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by Snackchez 3118 days ago
How much money needed to come into the bitcoin market for it bump from 15k to 19k? Where is this money coming from??
7 comments

You don't need money "coming into" to increase value of Bitcoin.

All you need is back and worth trades in th market. It can even be market manipulation where some buy and sell between themselves.

Bitcoin has massive market liquidity problem. Once people want to sell, the price drops like a stone. This is why it would be convent to have "technical problems" or do DDoS attack to prevent sells and allow markets to calm.

Had to be a lot. Should have screen recorded it, but instead recorded with my phone. The order book entries and chart were going nuts. Entire sections of the book disappearing at once. The chart would go almost entirely flat several times.

Almost always you see minor movement on the order book except maybe sometimes at the actual mid point it may update a bit. The chart is almost always balanced until the past few weeks it's be HEAVILY weighed towards the sell side.

71K+ BTC had been already traded by the time it hit high 19k.

I saw the same thing. It was insane
Technically, not much. Let's say people stopped trading except for two people that made a series of trades of .0000001 btc at $100k, then the price would be $100k.
Not much. 1% of asset allocation for an institutional investor is enough for that.

EDIT: You currently need $70m to bump the market above 20k on GDAX. That's a lot for retail investors but not much if institutional investors get involved.

In the grand scheme of things sure, but definitely a large influx as compared to the size of the market in Coinbase.

We're talking probably low 2-digit millions to make big moves I think.

Yep, around $70m to get it above $20k.
What institutional investor is going to put 1% into Bitcoin?
How do you determine the $70m?
You look at the "Depth Chart" -- it shows you how much people are selling (or buying if you go to the right) in a way that escalates as you get further away from the mid-market price that is currently executing.
"How much money needed to come into the bitcoin market for it bump from 15k to 19k?"

Almost none.

If there are just a few transactions at a price, well, we assume that is the worth of all bitcoins in existence.

Which is a crazy assumption, but hey.

right now, as i'm looking on gdax, the price is 16.3k/btc, and it would take 42m to fulfill all of the sell orders to push it up to 19k. that's not a lot (but it's only one exchange). i think <100m to swing the market by that much across all of the exchanges.
New money is coming in that's for sure. But a limited resource and a lack of sellers will also push the price.