Quick answer
Yes, both depositing crypto with a card and buying on the spot market can affect the market price, but they do so indirectly and through different mechanisms.
Overview
Depositing crypto with a card typically involves purchasing cryptocurrency instantly at the current market price using fiat money. This action increases demand, especially on centralized exchanges that facilitate such transactions. When many users buy crypto this way, it can lead to increased trading volume and upward price pressure, particularly if the purchases are large or frequent.
Buying on the spot market directly impacts the order book by matching buy and sell orders. Market orders execute immediately at the best available price, removing liquidity, while limit orders add liquidity. Aggressive buying on the spot market can deplete the order book’s sell side, leading to price increases due to supply-demand imbalances.
Conclusion
In essence, card deposits fund spot market activity, and both contribute to price movements by increasing demand and shaping the order book.
