The prices right now are changing so drastically in a very short amount of time. I feel like this is mostly due to automated high-frequency computer trades.
no it is not because of that.it was because of the series of good news that came out from Japan and a couple of big countries such as Russia about legalizing bitcoin that everyone who was already in decided to invest more. and then the wave of fresh money came in from new investors causing the big rally.
the drop was also because this rise happened all too fast and as a trader you want to cash out to make profit. and as you can see we are at the real price of $2100 ish once again. and that fall is called correction.
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Do you think there would be any difference if this were banned? Say the government outlaws that and all trades are done manually?
i believe your questions and confusion come from the fact that you have never used a bot before in your life and you are making some assumptions. i suggest trying one and see how it is really not that different doing the trades with a bot or without it.a bot is just giving you more options than the platform itself has.
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This market is so speculative I can't see any time in the near future that volatility decreases. Maybe once Bitcoins reaches mass adoption in 5 to 10 years.
Compared to the stock market, I don't know if I've ever seen a $40B market cap stock jump around like this.
it is the size of the market. it is too small right now. and price is mostly determined in the exchanges and with a quick look you may think the order sizes are big but when you compare it to your stock market you can see that they aren't really that big in comparison. Compared to the stock market, I don't know if I've ever seen a $40B market cap stock jump around like this.