[ad_1]
Are you considering jumping on the Bitcoin bandwagon if its price suddenly spikes? Hold on!
This article dives into why a rapid price increase, known as a pump, might not be the best sign for Bitcoin investors. It explores the potential downsides of a pump and why a more stable rise could be preferable in the long run.
Get ready to learn why a Bitcoin pump might be a warning sign you shouldn’t ignore.
Have you ever looked at the Bitcoin price chart and noticed a sudden, dramatic spike? That surge might be what’s called a crypto pump, a rapid increase in the price of a cryptocurrency, often caused by a rise in buying activity.
While jumping in and riding the wave can be tempting, especially for new investors, crypto pumps can be risky and short-lived.
These pumps can be caused by a variety of factors, including:
- Speculation: Positive news or rumours surrounding a particular cryptocurrency can trigger a buying frenzy, increasing the price.
- Market Manipulation: In some cases, whales (individuals or groups holding large amounts of crypto) can manipulate the market by buying large quantities of a specific coin, creating artificial demand…
[ad_2]
Source link