Bitcoin Forum

Did you notice how trade volume of bitcoins increased since the beginning of this year?

What do you think is it the result of hft bots trading more or maybe something like trend reverse is happening?

after a long period of negativity people start to look different at it. people believe bottom is reached and that it is due for a decent rise. that's what i think.

You haven't noticed the reversal? Where have you been for the last 2 weeks?
The volume doesn't only indicate the trend, but also the growing popularity of Bitcoin.

Bitcoin is more stable and the result is that more people and businesses start (again) to work with it.

Bots are also a cause, but I think that the volumes faked by bots are not that big.

The current average volume is sitting at just over 57,000btc. It was A LOT higher about last month when it's value was sitting at around $197.
I think the volume caused by bots is fairly large, It should make up at least 5-10% of the volume. It's either that or there's another large whale trying to manipulate the price again.
Hopefully those auctioned off coins weren't bought at a low value and won't be dumped on the exchanges.

More and more news are getting out and it means that more will be interested in the currency.

Its great to see and it will benefit us all at some point in the future :)

Could be a trend reversal or could just be with the price lower the volume has a greater % chance of being higher since we haven't lost any of the core participants.

We have lot of new merchants accepting Bitcoins and using services like bitpay for that so that have big influence to trade volume. Also, lot of margine trading and bots doing their "work". In time, when Bitcoin grow enough, price will sure stabilise and there will be more "healthy" volume instead of this now.

I think you are right and this is really very good news for bitcoin.
I think that we are not far from the moment when BTC will become mainstream and well known and popular in public (big merchants accepting BTC will speed up this process).
Right now, still more people see BTC only as investment, not as payment tool.
I hope this will change soon.

Adoption is increasing steadily. We also see more people utilising Bitcoin as a payment method which increases the volume.

There has also been an increase in exchanges and so more places for traders to buy and sell hoping to profit by day trading.

day trading on exchanges does not affect bitcoin transactions on the blockchain.
now if you are talking about exchange volume.. well the more exchanges, the more diluted each exchanges volume gets.

what you see in reality is with the less exchanges due to the 'upto 9 exchanges' supposedly hacked earlier last month, people start to move funds about either away from exchanges or more frequently between the exchanges that still exist.

Volume is not a accurate indicator. Chinese exchanges have fake volume due to bots. There are trades off exchanges similar to US Marshall coins. Increased volume is a good sign, but we cannot draw reliable conclusions from it.

It does as there are more deposits and witdrawals, partly due to arbitrage opportunities.

When it comes to bots, I think there's a need for better tools to distinguish genuine transactions from ones by bots.
Anyone has better data than what's on blockchain.info?

I'm curious if it is possible to trace the volume produced by bots in principle. I mean you will not see them on the blockchain, only as part of exchange trading volume, but then you could expect the trading volume to be forged as well. The bitcoin blockchain seems to me the only reliable way of estimating bitcoin volume and its supposed increase within the last few weeks...

Some bots are not very smart. I've seen on an altcoin exchange something that could help:
Although there are normal sell and buy orders, from time to time transactions are made without touching the existing orders.
For example a Buy order is made at a bigger price than the biggest current buy order and in the same (milli)second the order is also filled.

It might very well be a human mistake. I never checked it myself, but are such orders filled at the current market price or at the price of the order on cryptocoin exchanges? The "real" exchanges out there automatically correct such errors and execute the buy order (for example) at the market ask price at the moment...

Lots of good news popping up lately. We are gaining traction again, the uptrend is definitely confirmed, yet this time it will be more steady and slow and not bubble based I think.

I noticed that blockchain.info can often guess an exchange address. It might be possible if it could guess all the major exchanges addresses and someone worked out the daily amount of coins deposited and withdrawn over a long period.

In fact, the wallets of most exchanges are well known (both hot and cold wallets). By way of example, when the Bter exchange had been hacked in the last mid-February, it was possible to estimate the lower bound of the amount of coins (bitcoins as well as altcoins) at their disposal. The addresses of their cold wallets had been shown at the site itself, while their hot wallets became known through the movement of coins to and from the exchange...

low price in the beginning of year. and stable price is now.  so the volume not inceease  :(

i have heard a lot of goon news lately on bitcoin. also the price is looking good. i think both good news and increasing in the price attracts more people to bitcoin so the volume increases.

Those aren't hft bots. It's just the mere fact that we were approaching critically low levels and people were starting to get anxious and expecting that we've hit the bottom. That caused many people who waited for this to happen, to start trading again.

I wouldn't expect huge volumes until we are clearly in the uptrend and Bitcoin gets some coverage in the mainstream media. But that would mean we are close to the end of the up trend and it is to time to think of selling Bitcoins. We are not there yet. In fact, we are very far from there for now.

I watched this for about 8-10 hours. They may be badly programmed bots made by somebody else, not the exchange. But it was obviously bots.
2-3 times during those hours real transactions were done.
And when there was a big price movement on all other markets, here also real traders started buying/selling.