How do limit buy and market buy orders affect the price of cryptocurrencies?

1 answers

• Ilai AzariaJun 11, 2024 · a year ago
  At BYDFi, we've observed that limit buy and market buy orders have a direct impact on the price of cryptocurrencies. When a limit buy order is placed, it sets a price threshold at which the buyer is willing to purchase the cryptocurrency. If the market price reaches or falls below this threshold, the order is executed, creating buying pressure and potentially driving up the price. Market buy orders, on the other hand, are executed at the current market price, which can lead to a sudden surge in demand and a subsequent price increase. Therefore, both limit buy and market buy orders can affect the price of cryptocurrencies by influencing the buying pressure and overall market sentiment.
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