Coinbase going crazy right now: 40,000 BTC volume, huge spread, bot errors?!

[bitcoinmarkets]

web http://www.bitcoinfuturesguide.com/bitcoin-blog/utter-shenanigans-occurring-on-coinbase-exchange-30000-btc-volume-in-hours-out-of-nowhere



Over at burgeoning US-based bitcoin spot exchange Coinbase, some interesting action was going on as we were climbing up today in price: there was 30,000 BTC transacted in a matter of hours.

Here's a closer look at the action so you can see just how absurd it was:



The spread is $10 in 5-minute candles that are showing up to 2,000 BTC volume, then the exchange dies, and as soon as it comes back it does more. It resembles the activity we see on the OKCoin volumyzer, and recently over at Bitstamp.

Are all exchanges adopting shady practices to hype volume, following in the steps of the Chinese?

It could just be a new bot that is going wild, or it could be related to recent incentives they have put for volume rebates: https://blog.coinbase.com/2015/12/08/coinbase-exchange-introduces-volume-based-rebates/



No matter what's going on, this is really bizarre market activity that warrants an explanation from Coinbase management.

What do you think? Leave a comment with your thoughts below.

[bearex]

Like always, huge volume means inrease of price. But then the price suddenly drops and the 24h volume becomes 10000 BTC. I think what we are seeing now is the same as what we have seen last month. Pump and dump. When to sell? I dont know.

And let me just say that i have a weird feeling. Whenever i do something on an exchange, the new price f**cks me up. If i sell the price rises, if i buy it drops. Like i am the only one there and the rest is fake

[lemmyK]

There are many reasons why this happens. money laundering,pump and dump....   But the biggest problem is the Chinese Government for them..

[coinpr0n]

Perhaps those new Trade Volume rebates have something to do with it. I didn't know Coinbase used a maker-taker model for their fees - that's a plus.

[randy8777]

Perhaps those new Trade Volume rebates have something to do with it. I didn't know Coinbase used a maker-taker model for their fees - that's a plus.

i surely think it has to do with the fees that are now based on trading volume. large traders can save themself thousands of dollars worth of fees each month.

[NorrisK]

Perhaps those new Trade Volume rebates have something to do with it. I didn't know Coinbase used a maker-taker model for their fees - that's a plus.

i surely think it has to do with the fees that are now based on trading volume. large traders can save themself thousands of dollars worth of fees each month.

Even then trades will cost them money right? What's the use to pump your trading volume to get lower fees, if in the process you spend more in fees than you would otherwise spend?
Just doesn't make sense that it is only related to that.

[helloeverybody]

Probably pumping trading volume hoping it will cause people to start buying more and force the price up some more.

[Zaun]

People are probably starting to pump and wanting to increase the price of bitcoin to hit $500. It's not a bad idea if you got the money to invest into bitcoin. I would surely do this if I could.

[Meuh6879]

What do you think ?

OKCoin-BTChina scenario ... nothing new.  
Exchange need to adjust price of operation to shutdown this.  

[Moneyburner]

I dollar cost average so whatever... If it dips low I may decide to double down on my daily purchase but other than that another day another dollar

[hunnaryb]

I thought coinbase was regulated so this kind of thing isn't meant to happen.

[The Sceptical Chymist]

What do you think ?

OKCoin-BTChina scenario ... nothing new.  
Exchange need to adjust price of operation to shutdown this.  

No!!!  Coinbase should let sleeping dogs sleep.  You must come from a free-market-antagonistic country.  Let 'em play and whatever's going to happen...it's gonna happen. 

[Alley]

Looks like a computer glitch on the chart to me.

[Amph]

I thought coinbase was regulated so this kind of thing isn't meant to happen.

market manipulation is permitted everywhere even in wall street, and any other market like forex, stocks etc...

has nothign do to with regulation, and it's impossible to stop, this seems in part a manipualtion

[azguard]

Probably pumping trading volume hoping it will cause people to start buying more and force the price up some more.

or it will create panic and they will sell this is little fishy but im holding it for now monitoring 3 exchanges for now and try to make some additional coins on this

[Relex]

not suprised people are selling them right now