Last time I seen a situation like that was post $400 bottom. I bought in at $480, and as Bitcoin approached $550, there was some 5000K of Ask wall standing between spot price and $560, so I cashed in my coins. Literally 2 minutes later, a stream of massive bids pushed Bitcoin up to $570, and we know how things ran after that.

Some people argue that price always moves towards the deepest Wall on the order book, I would suggest that it is entirely dependent on the situation in the market at the specific time. With that said, what large scale buyer of Bitcoin is going to push the price up over $100 with so many fretting bag-holders around desperate for a chance to cut losses? Who wants to make a collective $2.25 million investment only to see the nominal value of this investment nose dive 10% within the next day of trading?

I would suggest that there is a tint of emotion and defensiveness in your posts that isn't normally there. I am not saying this to try and wind you up, I am saying it because I notice it.


Yeah, of course I can't really disagree with your logic...I just find it hard to imagine someone being mad enough to throw that quantity of money at Bitcoin when it seems obvious that it is going down much further......but that is of course just my opinion. Perhaps better informed persons know differently.

I would suggest however that these buy-in tranches are structured in such a way where the stinging ones that are triggered way above 'the bottom' can and will be sold back into market at break even or profit. They range deep enough, that should they all be triggered, then it would have to be some kind of flash crash where a violent rebound is nearly always guaranteed. Cos it is on Bitstamp, chances are these bids can be taken at face value however....Bitfinex, now that would be another matter entirely.

Edit: Further on the same topic. There are surely a lot of vested interests already up to the eyeballs in Bitcoin who really really do not want to see Bitcoin fall much below the $380 support. Bitcoin is still a very light market when it comes to players with actual money. Perhaps these buy-ins represent some institution taking a position, or perhaps it really is a measured defense mechanism implemented by an existing Bitcoin billionaire or entrepreneur. As I describe, these tranches can serve to reinforce Bitcoin through a difficult time without the need for the buyer to take any real losses on the trades, unless an unforseeable avalanche occurs. it is certainly the case that with these Buy-ins taken out the picture (some 500 BTC per $10), that the Bid pressure on Stamp would be looking much weaker and much more of a cause for concern for nervous investors/holders. If I was really wanting to accumulate that amount of Bitcoins at those prices, I wouldn't set up a great big range of buy-in tranches that actively discourage the price from ever meeting them.