What is going on? Trading volume is so low!

[Questing]

Is you are more interested in daytrading, only advice is to plan your strategy in advance and stick to it. Don't panic, don't be greedy. Respect what you have established as entry and exit points. Emotions are your worst enemy.

This is good advice - although I would also recommend being careful about just how much cash/BTC you leave on any exchange (too many have crashed and burned).

Yes, good advice everybody needs to know. Sounds like banks are starting to work against btc. And it spells trouble for some btc exchanges. USA is turning into a no go zone

[Questing]

Thats pretty normal, had similiar low'ish volume last week or so, but there was still tons of action at some point, even with 50-60k volume.

Thank you for weighing in your opinion. You make a good point

[ManBearPig]

Yes it certainly has dropped off but the fact the price is settling just about in 3 figures is broadly positive as I see it.

A slow fall from here on in would not spell disaster but would certainly expedite the next wave of speculation.

Take a look at the big picture, here on the all-time weekly chart (close prices, log scale).

(snip)

A few things to note about 2013 with 2011: the run-up was less steep, the sell-off was less intense, and we've settled into a mid-term price quicker at a point relatively higher.

Thank you for the chart, and for sharing your opinion. Personally, I think your spot on the money. I cant help but be excited by the prospects of btc. Might just keep growing and change the world. I think btc have become my hoby 

You're welcome, it's certainly stolen a lot of my time but it's been profitable and fun! Congrats on owning your first share of the pie

[Questing]

This is great. For anybody how hasent seen the Billy Joel re-mix
http://www.youtube.com/watch?v=NG1qooBzE2w

[bozak]

Volume tends to build on itself.  Given the Gox commision structure (flat % regardless of order size).  There is little incentive to trade unless the market is volitile.  Overall, stability is good, low volume should lead to stability in exchange rate, which should lead to more businesses accepting BTC, which should lead to slowly increasing exchange rate.  Be happy that we have low volume on the exchanges.   

[BitChick]

Volume tends to build on itself.  Given the Gox commision structure (flat % regardless of order size).  There is little incentive to trade unless the market is volitile.  Overall, stability is good, low volume should lead to stability in exchange rate, which should lead to more businesses accepting BTC, which should lead to slowly increasing exchange rate.  Be happy that we have low volume on the exchanges.   

This is true.  However, it has been very boring lately!  Perhaps I like it a little more exciting?  It was a huge adrenalin rush when the price was going up like crazy!     I think if there is a day where it starts to jump really fast people will panic and start buying again.  I think there are many people just waiting it out, with so low buy orders, to see if it goes down again but will buy when a new rush begins.  Just my thoughts.

[Rampion]

Volume tends to build on itself.  Given the Gox commision structure (flat % regardless of order size).  There is little incentive to trade unless the market is volitile.  Overall, stability is good, low volume should lead to stability in exchange rate, which should lead to more businesses accepting BTC, which should lead to slowly increasing exchange rate.  Be happy that we have low volume on the exchanges.   

This is true.  However, it has been very boring lately!  Perhaps I like it a little more exciting?  It was a huge adrenalin rush when the price was going up like crazy!     I think if there is a day where it starts to jump really fast people will panic and start buying again.  I think there are many people just waiting it out, with so low buy orders, to see if it goes down again but will buy when a new rush begins.  Just my thoughts.

Rush won't start anytime soon. And this is good. Bitcoin is not a get rich quick scheme.

[BitChick]

Rush won't start anytime soon. And this is good. Bitcoin is not a get rich quick scheme.

Hopefully it is a get rich "at some point" scheme.  I know many people are into BTC for ideological reasons.  I am shamelessly in it primarily for the fact that I can make some money (or have money that will hold it's value better).  Of course, there is something heartwarming about bypassing the banks too.

[Peter Lambert]

No one wants to buy so high. Price will drop. Unfortunatelly I am a bull at higher levels...

No one wants to sell so low. Price will rise.

[Peter Lambert]

Low volume is because we are reaching a tipping point. Both buyers and sellers are on hold. There are two options:

a) consolidation phase, plus steady and sustainable growth (no more bubbling for now)
b) bear market, slow and deep decline (as per 2011)

Anyhow, depth on both sides of the order book is big and healthy. ATM sellers are placing asks and not dumping, buyers are placing bids and not making market orders.

We will see where we are heading at very soon. I say give 70% chances to consolidation phase; 30% chances for bear market.

You forgot the third option: once price stabilizes for a bit and people see it is not going down anymore, they will start buying hard again and the price will bubble up over 500.

[Peter Lambert]

Yes it certainly has dropped off but the fact the price is settling just about in 3 figures is broadly positive as I see it.

A slow fall from here on in would not spell disaster but would certainly expedite the next wave of speculation.

Take a look at the big picture, here on the all-time weekly chart (close prices, log scale).



A few things to note about 2013 with 2011: the run-up was less steep, the sell-off was less intense, and we've settled into a mid-term price quicker at a point relatively higher.

Nice graph.

Also remember that the bitcoin inflation is now less than half what it was in 2011, so all things being equal, one would expect the downtrend to be less steep after the run-up.

[Questing]

Volume tends to build on itself.  Given the Gox commision structure (flat % regardless of order size).  There is little incentive to trade unless the market is volitile.  Overall, stability is good, low volume should lead to stability in exchange rate, which should lead to more businesses accepting BTC, which should lead to slowly increasing exchange rate.  Be happy that we have low volume on the exchanges.   

This is true.  However, it has been very boring lately!  Perhaps I like it a little more exciting?  It was a huge adrenalin rush when the price was going up like crazy!     I think if there is a day where it starts to jump really fast people will panic and start buying again.  I think there are many people just waiting it out, with so low buy orders, to see if it goes down again but will buy when a new rush begins.  Just my thoughts.

Yes, I love the excitement of wildly fluctuating prices. But I also understand the need for a stable currency if businesses are to adopt btc in the long run. I suggest we need the excitement, the roller coaster ride for a while longer, as this is what gets media attention. Which brings in the new users. Hopefully its the natural progression for btc to stabilize once there is a large number of users.
I've only been day trading a couple days, and as soon as I feel I'm getting a handle on it, the price flat lines. lol

[Questing]

Rush won't start anytime soon. And this is good. Bitcoin is not a get rich quick scheme.

Hopefully it is a get rich "at some point" scheme.  I know many people are into BTC for ideological reasons.  I am shamelessly in it primarily for the fact that I can make some money (or have money that will hold it's value better).  Of course, there is something heartwarming about bypassing the banks too.

I use it for both reasons. I love the ideological reasons, and how btc might charge the world for  better. But I'll shamelessly chase earnings, and tell the people I told about it "I told you so" you should have listened.
It seems to me, the system has been stacked against us. And now the systems currencies are slipping through their fingers like water, and there might be very little they can do about it. The early adopters "trail blazers" are going to see a considerable upside. Perhaps btc is a get rich quick scheme for some.
Next time a bubble happens, I have the buy and sell indicators needed to make good. I'm not missing the next oppertunity

[Questing]

The system in which we live today, is heavily stacked against the up and comer, and stacked in favor of those already established in business and wealth. And myself operating a business in a heavily regulated industry with short capital, I am qualified to say this. But I can be philosophical about this state of affairs. I'm not saying they dont deserve their wealth, as many have worked hard to achieve it. And I'm honest enough to admit, I probably wouldn't be complain if it was me that was already well established.
Dont take me wrong, as I'm perfectly willing to work for my dues. But if Bitcoin represents a free elevator ride up for the early adopters, then I'm going to do what I can to be aboard. Bing!!! This is your elevator attendant speaking, going up sir?
Not all, but btc might redistribute some of that horded wealth. And I think that's great. Reshuffle the decks a little, so to speak.

And banks represent a multi Billion dollar inefficiency in the system. Do we really need armies of well paid people just to move money around the place, from me to you?  The answer is a resounding no, thanks to bitcoin! And they're not even particularly good at it, considering how long it takes them to transfer electronic money. Typically 3 days, but I can wait up to 6 days sometimes for international transfers to arrive with me, if a weekend falls in the way. We'll still need banks for stuff, but I'll be happy to see them tighten their belt straps a little.

[Come-from-Beyond]

What is going on? Trading volume is so low!
Please let us know your opinion, why is trading volume at an all time low?

A lot of guys bought BTC for $200-$260, now they are waiting when the price touches $200 to start selling even with a little loss. Other guys know that and don't buy coz believe it's very hard to move the price over $250.

[Rampion]

Rush won't start anytime soon. And this is good. Bitcoin is not a get rich quick scheme.

Hopefully it is a get rich "at some point" scheme.  I know many people are into BTC for ideological reasons.  I am shamelessly in it primarily for the fact that I can make some money (or have money that will hold it's value better).  Of course, there is something heartwarming about bypassing the banks too.

Just don't forget this is experimental software. It could go south in one second. And sooner or later, governments will fight against it: the status quo will never give up its power, based on controlling the monetary supply, without a big fight.

Bitcoin may well be the cheapest way to get wealthier, if it keeps succeeding; but also the quickest way to lose everything you have invested in it.

[Seal]

A balanced portfolio is definitely the best bet.

Since the DDOS yesterday, MtGox turned off API support for anything calling the older https://mtgox.com/api pages and is now only allowing orders to be placed through their data.mtgox.com url calls.

I haven't looked on the forum much but didnt see this announced anywhere. Over the next few days I imagine others who run bots will pick up on this, fix their code and re-start their bots.

*edit* To clarify, I believe the API functions to query order response / account data were changed.

[Questing]

Since the DDOS yesterday, MtGox turned off API support for anything calling the older https://mtgox.com/api pages and is now only allowing orders to be placed through their data.mtgox.com url calls.

I haven't looked on the forum much but didnt see this announced anywhere. Over the next few days I imagine others who run bots will pick up on this, fix their code and re-start their bots.

*edit* To clarify, I believe the API functions to query order response / account data were changed.

Plz forgive my ignorance. Are the bots hostile toward Mtgox?

[Questing]

Wow, hows that little run up to $19!!! then quiet again

[Operatr]

I think a lot of it has to do with the emergence of several new coins as well, traders have shifted their attention to these as BTC continues it's overall rise beyond comfort level for many weekend warriors. Altcoins are dirt cheap and are much more volatile, many are making a killing riding those waves, but it is a lot more dangerous (as I know with FTC bottoming out...)

If anything it is a good thing to see this volatility find a new home which keeps BTC and LTC more stable overall and less prone to run ups/downs because it is being taken to altcoin exchanges instead. The price has remained as BTC is being diverted to these other coins as well. This extends to mining botnets as well that are targeting the altcoins with BTC difficulties exploding (severely in the coming months with ASICs finally hitting the streets en masse).

I look at the larger picture though beyond the day trade. Simply holding your BTC could make you a very rich person as governments and banks continue to implode. We have already seen an example of people flocking to Bitcoin with the Cyprus mess, and now Argentinians are getting on board as the Peso crumbles at 25% inflation per year (!!!). The exodus from fiat has only just begun, thanks to the news people are waking up to the fact there is a way out that never existed until now.

The buy in is higher now, but the eventual end game will make that $100/BTC look like nothing when it crests $1000s as banking exiles find a new home in crypto-currency as trust in the fiat system continues its epic decline to irrelevance.

We are the pioneers of the most massive paradigm shift the world has ever seen. Hold on to your butts when the fiat stock markets go straight into the ground a little later this year probably taking the rest of the world with it, and that is happening right now as it reaches the level it did right before the 2002 and 2008 crashes. Real economists not controlled by NewsCorp see it coming, as the stock trade is booming, while real world economics paint a whole different picture of what is really going on. Several nations are on the brink of total collapse, any market quiver will spell the end at this point, and it cannot simply be "fixed" by Bernake's magic money press this time.

I truly believe Bitcoin may very well be the last working economies left, and soon.