What emerging risks—including liquidity pressures, potential market manipulation, and quantum computing vulnerabilities—should beginners understand about Bitcoin’s volatility?
Correct Answer
Beginners should know that borrowing against Bitcoin positions can force sales if prices drop, leading to liquidity pressures. Large investors might also manipulate small markets to trigger margin calls. Additionally, future quantum computers could break current cryptography, threatening wallet security. Understanding these risks helps manage volatility and set prudent investment limits.
Why is this the correct answer?
This is correct because liquidity risks can cause sharp sell-offs when leverage is involved. Market manipulation by whales can exacerbate price swings, and quantum computing represents a long-term security threat. Beginners need to recognize that beyond market trends, structural and technological vulnerabilities can impact Bitcoin’s stability.