I"ve only been around watching the BTC for the last 3 months, and one thing that stands out when zooming out to the full picture volumes where much higher when BTC was valued lower (and when there were less BTC minted). Now it takes less BTC from whales now to "move" the market. So maybe this is because there are more BTC in the market. Is that a good theory?
EDIT: My theory is probably wrong, but it's an interesting observation, and it would be good to see a chart that takes into account the available BTC participating in volume for such charts
It's important to remember the value required to create volume in Bitcoin exchanges.
If Bitcoin is valued at $10, then $100 can move 10
BTC, but if Bitcoin is valued at $100, then $100 will only move 1
BTC.
On Bitcoincharts.com, at least, if you view all data, click the checkbox on the right to show "Volume in Currency"That will illustrate the difference.
Yeah, that makes more sense, I did do a second edit suggesting that this might be a factor.
I think the chart would be interesting plotting that value on the right axis, with both charts having their logarithmic axis normalised (as they're not really the same charts atm).
I"ve only been around watching the BTC for the last 3 months, and one thing that stands out when zooming out to the full picture volumes where much higher when BTC was valued lower (and when there were less BTC minted). Now it takes less BTC from whales now to "move" the market. So maybe this is because there are more BTC in the market. Is that a good theory?
EDIT: My theory is probably wrong, but it's an interesting observation, and it would be good to see a chart that takes into account the available BTC participating in volume for such charts
you're confusing me, and that's my job...
In terms of the relationship to the price, using % volume would change the values but wouldn't affect the temporal relationship with the price....maybe.
It's late for me and I should have thought a little more before commenting. Off to bed.
