Theory regarding the 10K Bitstamp wall.

[MatTheCat]

These are arbitraged Gox coins.

Assuming that:

• Gox volume can be faked.
• Most Bitstamp Trading is done by bots hooked up to cross exchange price action
• Most Bots are coded to recognise sharp declines as buying opportunities.

Gox price could be manipulated to crash, dragging other exchanges with it. Whale with 10K of Gox coins to arbitraged comes along with a 10K limit order on Stamp. It sits there and scares the hell out of a few causing a bit of a sell off, so he has to reposition it a bit further down.

Gox then starts to climb, just enough to trigger bots on other exchanges to start exerting buying pressure. However, due to the 10K wall on Stamp, exchanges 'recovery' progress is halted, yet Bitstamp bots keep buying into 10K wall cos their dumb programming is telling them to buy.

End result.

Whale shifts huge amount of BTC at very high price. Bot operators are left holding between them 10K BTC at $579.
A great result for the whale....very bad result for the bot operators.

[threecats]

Sounds like a very reasonable explanation. He is definitely getting a nice return with his strategy. My own feeling is that several of these massive dumps over the past 48 hours are gox insiders getting out.

[TERA]

wow a real wall. i havent seen this since july on gox. it loiks like stamp is finally growing up into a major exchange, to replace gox. great. i guess that needs to start with some goxcoins though.  now when will we start to see bidwalls like this?

[stylin]

The wall is too conspicuous to be a part of any strategy let alone a smart one. Somebody may have just wanted a mansion and being the nice early adopter he is selling all his coins a bit below market price to not cause panic

[MatTheCat]

The wall is too conspicuous to be a part of any strategy let alone a smart one. Somebody may have just wanted a mansion and being the nice early adopter he is selling all his coins a bit below market price to not cause panic

You obviously haven't been paying much attention old boy!

He has sold over 4000 BTC at the spot price of when he placed his 10K order!

Who gets to sell 4000 BTC at spot price FFS?

[threecats]

ELI5 how this works with the liquidity on BFX, we are about 4 dollars over the wall. we cannot buy into it, if he suddenly unloads how much of the BFX order book gets taken out .... ?

[sgk]

Whoever it is, but he is successfully selling all those coins rapidly. The wall volume is already at only 5800 now.

[MatTheCat]

Whoever it is, but he is successfully selling all those coins rapidly. The wall volume is already at only 5800 now.

Yep.....had he sold them the 'traditional way' he would have crashed market for sure.

....now the market will crash after he is out, all the liquidity is dried up, and bots realise they are holding a big pile of expensive coin.

[cosmofly]

Whoever it is, but he is successfully selling all those coins rapidly. The wall volume is already at only 5800 now.

Repetilia

[cosmofly]

Whoever it is, but he is successfully selling all those coins rapidly. The wall volume is already at only 5800 now.

Yep.....had he sold them the 'traditional way' he would have crashed market for sure.

....now the market will crash after he is out, all the liquidity is dried up, and bots realise they are holding a big pile of expensive coin.

I hope that happens. It's unbelievable the prices remains so high so long. In April bubble prices crashed to $50-$70 at least 8 times. However this time the price is v stubborn with no real chance of cheap coins other than flash crashes that no one gets to buy into

[MatTheCat]

I hope that happens. It's unbelievable the prices remains so high so long. In April bubble prices crashed to $50-$70 at least 8 times. However this time the price is v stubborn with no real chance of cheap coins other than flash crashes that no one gets to buy into

Because Bitcoinland is about the dumbest market on earth, price will probs spike in aftermath.

Already read loads of comments on here about this showing how 'strong' the market is and how it is therefore bullish.

But that there is 6 million USD of liquidity being taken out the market on Stamp alone.

6 Millions USD to keep the price at $779.34 for a few hours....mostly by automated bot buy-ins. (wonders what bot masters will make of it when they find out)

Methinks I shall now go to bed leaving my shorts open with no stop loss.

[Bitcoin_is_here_to_stay]

Well, obviously somebody who wanted to say 10k BTC quickly and did not care about maximizing the profit. likely somebody locking in huge gains anyway, imho.

Anything else is pure guessing - we can as well use tea leaves to try to answer whether it was an Mt Gox insider ...

[TERA]

they could be Chinese coins too

[knightcoin]

Any exchange can fake transactions and that's the reason trade system should be open source or at least have a transparent trade auditing engine...

[derpinheimer]

Any exchange can fake transactions and that's the reason trade system should be open source or at least have a transparent trade auditing engine...

Are you referring to bitstamps wall? Nothing about it seems fake.

[sgk]

.............and people have started selling as low as $556 to bypass the 'great wall'

[Tzupy]

Could be coins from bitcoinbuilder transactions.

[knightcoin]

Any exchange can fake transactions and that's the reason trade system should be open source or at least have a transparent trade auditing engine...

Are you referring to bitstamps wall? Nothing about it seems fake.

No I am not putting a finger in anyone, but if you control the exchange source code, you control everything ...  for example ... you recive the orders buy/sell from a client, then you will add kind of timestamp and pass it to match engine (lets say priority based on price and time logic) .. so you store it in an array ...

Code:

class ArrayContainer
{
class Order
{}
static void Main(string[] args)
{
//Create orders
Order order1 = new Order();
Order order2 = new Order();
Order order3 = new Order();
//Declare array of order type
//and add the above three order instance
Order[] orderList = { order1,order2,order3};
//Access the order
Order curOrder = orderList[1] as Order;
}
}

You just need to inject your own set of data ... I'm really made an oversimplification to the problem but my point is... without a proper audit engine you must need to trust the exchange A,B, C & Z ... In stoke exchange for example there are independent authorities to do that job... (off course you need to trust then as well, never end history )

[MatTheCat]

Whale obviously got bored and just dumped his last 5000 BTC.

Obviously he is quite insensitive to whether he gets full value for these Bitcoins and/or doesn't think it would be a good idea to hold out for better prices.

I wonder if/when he will be back with another 10K Stolen/auctioned/Gox'd BTC.


3 million USD worth of $580 coins sold, quite possibly about to become 5000K of fresh bagholder coin. 3 Million of liquidity eaten up between $570 - $514 with no reason to believe that he or someone just like him, won't be back for more fun later on.

This is extremely bullish for Bitcoin, apparently.  

because billyjoeallen said so.

[fonzie]