Post
Topic
Board Speculation
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
var53
on 19/09/2015, 17:32:51 UTC

50k BTC of volume on OKC earlier, what happened? Was it a wall that got dumped in to or a wall that got ate up?


OKC has very low fees which encourages high frequency trading by bots. Often its volume doesn't come from walls being demolished or eaten up, it comes from a multitude of small trades slightly above and below a fixed price. OKC has been accused of faking volume, but it claims its volume is due to high frequency trading bots which are under the control of third party traders. It denies those bots are under its control.

Either way the volume there is often due to bots that somehow maintain a fairly stable price. If 50k BTC of volume was dumped on Bitfinex it would crash BTC below $200, and if that much was bought on Bitfinex it would pump the price above $300.