Identifying fake liquidity in Bitcoin (BTC) and cryptocurrencies is important for traders to avoid unexpected sharp declines when volume is low. 📉 By analyzing how market creators are organized, order book mechanics and practical indicators, artificial volume can be detected and unwanted consequences can be prevented.

Market makers play a key role in crypto markets by providing liquidity. However, their activities are not always reliable. They can manipulate the market by placing large orders to create the impression of demand or supply.

They also often enjoy benefits such as reduced trading fees or access to tokens not available to the public, allowing them to influence market conditions.

Traders should use analytical tools to analyze the depth of the order book. Sites such as CoinMarketCap, CryptoCompare and Coingecko can provide complete data on trading volumes and token availability.