Bitcoin Forum

Economy => Trading Discussion => Topic started by: BTCIndia on November 16, 2014, 07:05:51 AM



Title: What is Market Liquidity?
Post by: BTCIndia on November 16, 2014, 07:05:51 AM
Most of Bitcoin are in sink account or being horaded by early adaptors reluctant to spend them. Who'd like to spend then at $4000 when they know soon it will be more than that. I was wondering, how many coins are available in market for buy/sell.

Any ideas?

Any place where I can get more data on liquidity?


Title: Re: What is Market Liquidity?
Post by: sobitcoin on November 16, 2014, 07:22:59 AM
I have no idea at all, but i feel like something could be generated from all the charts here lol http://www.bitcoinpulse.com/


Title: Re: What is Market Liquidity?
Post by: bitnanigans on November 16, 2014, 08:56:52 AM
You might have to analyse the trade volume on all exchanges to be able to get this. There are so many exchanges now that I've lost track.


Title: Re: What is Market Liquidity?
Post by: BTCIndia on November 16, 2014, 09:11:00 AM
Any approximation?

Under 10,000
10,000-20,000 Coins
20,000-50,000 Coins
50,000 and more?


What do you think?


Title: Re: What is Market Liquidity?
Post by: kolloh on November 16, 2014, 10:10:19 AM
I would say the number is always changing on a daily basis. I haven't really looked into it but I'm sure you can find this type of information by looking at the major exchanges.


Title: Re: What is Market Liquidity?
Post by: hua_hui on November 16, 2014, 11:21:36 AM
It is just estimated from the day trading volume and not very accurate. Some factors we should is that the day traders are making buy order then selling them I the market in the same day. So this trading volume is double of the actual liquidity.


Title: Re: What is Market Liquidity?
Post by: BTCIndia on November 17, 2014, 09:03:05 AM
It is just estimated from the day trading volume and not very accurate. Some factors we should is that the day traders are making buy order then selling them I the market in the same day. So this trading volume is double of the actual liquidity.


Great point! I believe, liquidity is lot less than it appears as most of participants are day traders indulged actively in trading. I think, its almost 20-30% of added liquidity of exchanges.

It is difficult to calculate from exchanges as we do not know genuine and fakes.


Title: Re: What is Market Liquidity?
Post by: dothebeats on November 17, 2014, 02:39:53 PM
Market liquidity refers to how many coins are being moved and traded in a day. However, the number that is being posted in the exchanges are not accurate and is just an estimate of how much coins are really being traded. You can get an accurate number of the market liquidity if you study the volume of trades in the exchanges.


Title: Re: What is Market Liquidity?
Post by: bloodDiamond on November 18, 2014, 10:04:28 AM
What Is Liquidity?
Liquidity is the term used to describe how easy it is to convert assets to cash. The most liquid asset, and what everything else is compared to, is cash. This is because it can always be used easily and immediately.

so... more btc are traded in a window period, hourly, daily or montly... and more easiest it is to convert it no cash.

I hope I explained


Title: Re: What is Market Liquidity?
Post by: BootstrapCoinDev on November 20, 2014, 03:00:25 PM
'Market liquidity' is a fallacy. If you hold on to a certain amount of currency on an economy and don't use it, the remaining currency which is being used will be worth more and will serve whatever investment needs there are. That's what the US economy currently does and that's working out well.


Title: Re: What is Market Liquidity?
Post by: BitCoinPokerBro on November 20, 2014, 05:23:59 PM
http://www.investopedia.com/terms/l/liquidity.asp

The title does not have anything to do with the description


Title: Re: What is Market Liquidity?
Post by: Monkeynutz on November 25, 2014, 06:47:20 PM
'Market liquidity' is a fallacy. If you hold on to a certain amount of currency on an economy and don't use it, the remaining currency which is being used will be worth more and will serve whatever investment needs there are. That's what the US economy currently does and that's working out well.

Yup, pretty much this


Title: Re: What is Market Liquidity?
Post by: Bejkn on November 26, 2014, 02:14:18 AM
As we all know, there are more than 20,000 bitcoins on Bitstamp, and at least 10,000 bitcoins on Bitfinex, LakeBTC and BTC-e, and it's over 50,000 bitcoins on only four Bitcoin Exchange.

So, I think that at least 100,000 bitcoins in the global markets


Title: Re: What is Market Liquidity?
Post by: FattyMcButterpants on November 26, 2014, 10:18:39 PM
Most of Bitcoin are in sink account or being horaded by early adaptors reluctant to spend them. Who'd like to spend then at $4000 when they know soon it will be more than that. I was wondering, how many coins are available in market for buy/sell.

Any ideas?

Any place where I can get more data on liquidity?
You can look at the order book at various exchanges if you want a good idea as to how much you can trade without encountering very much slippage.

If however you were to trade large amounts over time that do end up moving the market, it is likely that more people will buy when the price is lower and more people will sell when the price is higher. In effect the more you move the market, the more liquidity you will have to fill your large order