The Impact of Sniper Bots on Liquidity and Volatility in Crypto Markets

Sniper bots are a type of algorithmic trading software designed to execute trades with remarkable speed and precision. Unlike traditional market-making bots that operate within a certain spread, sniper bots concentrate on exploiting value discrepancies and fleeting opportunities within the market. They're programmed to swiftly enter and exit trades, typically within milliseconds, to capitalize on minute price differentials.One of many primary effects of sniper bots on crypto markets is their impact on liquidity. Liquidity refers back to the ease with which an asset can be purchased or sold without significantly affecting its price. In theory, elevated liquidity is useful for…