Low liquidity periods in the cryptocurrency market can significantly impact prices. During these times, trading volumes drop, leading to wider bid-ask spreads and reduced market depth. This makes it easier for large orders to move prices sharply, as there are fewer buyers or sellers to absorb the volume. Volatility tends to spike, amplifying price swings, especially in smaller or less-traded cryptocurrencies. Market manipulation risks also rise, as low liquidity allows whales to influence prices with relatively small trades. However, the impact varies by asset—larger cryptocurrencies like Bitcoin may be less affected due to their deeper markets. External factors, such as news or regulatory events, can exacerbate price movements in low-liquidity conditions. Traders should exercise caution, as sudden price drops or pumps can occur with little warning.