Quote from: Ares on May 06, 2013, 01:02:54 AM

Quote from: solex on May 06, 2013, 12:48:42 AM

Quote from: Cablez on May 06, 2013, 12:41:52 AM

It just boggles my mind that someone will play around with 2mil in cash in a market like this. I wonder how many BTC he has?

Zero. And just learned about Bitcoin, how amazing it is, and wants a long-term holding like Winklevii, Exante and Keiser?

If someone really wanted to get in at 110 with 2 mil, I think they would put a much smaller wall there and then reinforce it as it gets eaten

It's not about buying BTC. He's stabilizing the market and removing volatility. That wall is preventing the market from going down. The same as the ask walls usually prevent the market from going up.

Any of the big Bitcoin businesses would be interested in stability, including of course MtGox. Arguably, Bitcoin is MtGox. They probably care about the perception of Bitcoin more then anyone. They stand to make 10s of millions if Bitcoin continues to grow. They have the money and coins to do whatever they want with the market. If you owned MtGox, would you "let the market do whatever it wants" or would you "actively protect the market". Seeing as you'd make millions if Bitcoin grows, might perceive volatility as a negative, I'd be surprised if they didn't manipulate things for their own good.

There's also a number of people who have 50k-300k coins who probably have cashed out 1-5M. If I owned that many coins, I'd keep a nice chunk of cash on MtGox to prop up Bitcoin as needed. It's a way of protecting your investment. You can instantly remove panic, calm the market down, just by putting up a wall. Or even buying up coins, reducing supply, calming everything down.

The interesting thing is, the coin dumps have stopped. No one has sold a huge chunk of coins. No one wants to cash out anymore? More evidence the coin dumps are to move the market down, not to take profit. The market is small enough one person can push it up and keep it up. And one person can push it down and keep it down. Which means the market price of BTC has little to do with how well Bitcoin is actually doing. The exchange is its own ecosystem and doesn't directly translate to how well Bitcoin is doing. Price going up doesn't mean Bitcoin is doing well. Price going down doesn't mean it's doing bad. It's a whole bunch of people trying to make some money and Bitcoin is without question secondary on the exchange.