Hedge fund puts up wall while preparing new money...

[TERA]

Gox volume: 5267
Stamp volume: 7494

How can you conclude that there is a "wall up" or anything like that with such low volumes? Of course it's not going anywhere with such low volume.

[piramida]

if anything, the visible bid side on gox has increased greatly lately to 42m USD, while asks reduced to 28k BTC. Ratio was about 35m / 35k just couple of weeks ago. the ratio is 1.9 now, it hits 2 and the steam will blow the top off that wall.

[T.Stuart]

if anything, the visible bid side on gox has increased greatly lately to 42m USD, while asks reduced to 28k BTC. Ratio was about 35m / 35k just couple of weeks ago. the ratio is 1.9 now, it hits 2 and the steam will blow the top off that wall.

The shape was quite different 12 hours ago. Much more daunting ask side.

[BitchicksHusband]

This is just speculation but it might well actually be happening.

As new money is being prepared by hedge funds they don't want to pay the prices Bitcoin is heading to. The very first money is definately in already - we know that. So someone might be trying to hold things steady with a wall.

But how long can they hold out against the persistent swell of interest?

Thoughts... 

If a large fund is looking to take a long term position in Bitcoin will the fund managers be most likey to:

a) Enter the market Honest John style, buying the dips but with their large purchasing power invariably pushing the price increasingly higher, causing sell-off events that enriches Joe Public at the funds short term epxense.

b) Use their present Bitcoin position to facilitate a panic selling price crash, perhaps timing their dump to hit a low volume market on a bad news day, but culminating in them scooping up large volumes of cut price coins.

c) None of the above. Large funds won't seek to take a mammoth Bitcoin position via the exchanges, but rather arrange an OTC style private transaction(s).

b + c.  Get the price down on the exchanges using questionable moves and then buy off exchange using the deflated exchange price as a negotiating tactic.

[BitchicksHusband]

@T.Stuart,
first I thought I got it (the wall issue)
but: who and how will someone profit from keeping the price at a certain Level? (besides Joe public who get "nice" prices)

One who wants to buy large quantities of coins in off exchange deals (I think they will agree on exchange price, which they are suppressing).

Ahhh.  Why have I never thought of that?  It makes total sense.

Hopefully at some point all of the coins that are being sold off of the exchanges are sold.   That is when we will really see some crazy things happen.

I would think that the miners, or whoever else is selling coins off of the exchanges, would at some point run out of them, or if they are still mining, the demand will outpace the mining process. 

That's because you're not evil enough babe. 

[wachtwoord]

@T.Stuart,
first I thought I got it (the wall issue)
but: who and how will someone profit from keeping the price at a certain Level? (besides Joe public who get "nice" prices)

One who wants to buy large quantities of coins in off exchange deals (I think they will agree on exchange price, which they are suppressing).

Ahhh.  Why have I never thought of that?  It makes total sense.

Hopefully at some point all of the coins that are being sold off of the exchanges are sold.   That is when we will really see some crazy things happen.

I would think that the miners, or whoever else is selling coins off of the exchanges, would at some point run out of them, or if they are still mining, the demand will outpace the mining process. 

That's because you're not evil enough babe. 

So your advice is to get more evil?

[BitChick]

@T.Stuart,
first I thought I got it (the wall issue)
but: who and how will someone profit from keeping the price at a certain Level? (besides Joe public who get "nice" prices)

One who wants to buy large quantities of coins in off exchange deals (I think they will agree on exchange price, which they are suppressing).

Ahhh.  Why have I never thought of that?  It makes total sense.

Hopefully at some point all of the coins that are being sold off of the exchanges are sold.   That is when we will really see some crazy things happen.

I would think that the miners, or whoever else is selling coins off of the exchanges, would at some point run out of them, or if they are still mining, the demand will outpace the mining process. 

That's because you're not evil enough babe. 

So your advice is to get more evil?

He is always hoping I will be more "naughty."  What was he thinking marrying a "nice" girl? 

I do have a hard time understanding people or companies that manipulate others.  It is not in my nature, thankfully.  Hence why I just "buy and hold."  Perhaps only manipulators can understand how to speculate successfully.

[T.Stuart]

I do have a hard time understanding people or companies that manipulate others.  It is not in my nature, thankfully.  Hence why I just "buy and hold."  Perhaps only manipulators can understand how to speculate successfully.

This is a one-in-a-lifetime chance to get in ahead of the hedge funds, who are just starting to get in, with more lining up.

[piramida]

if anything, the visible bid side on gox has increased greatly lately to 42m USD, while asks reduced to 28k BTC. Ratio was about 35m / 35k just couple of weeks ago. the ratio is 1.9 now, it hits 2 and the steam will blow the top off that wall.

The shape was quite different 12 hours ago. Much more daunting ask side.

Hm you are right. Extra 40k BTC on the ask side now, for a 62k total. That is quite a wall there, somebody really needs the price to be below 1k

Do you know, is somebody plotting bid/ask ratio over time? Might be very interesting to look at.