Re:Blockchain startup R3 sues competitor Ripple
by s17n on Friday September 08, 2017 @06:01PM
(#15204267)
I'm not totally sure what the chart means (and I did read the explanation), but if I'm understanding you correctly, you're saying that Bitstamp has $10M worth of buy orders for BTC at a price of at least $(current price - 270)?
Re:Blockchain startup R3 sues competitor Ripple
by modeless on Friday September 08, 2017 @07:33PM
(#15204745)
Yes, that is what he means. You can see a combined order book for most of the large exchanges here:
http://data.bitcoinity.org/markets/books/USD
For example, by looking at this chart one can calculate that if one sold 10,000 Bitcoins right now with simultaneous market orders across all exchanges, one would receive north of $40M and the price would drop to $4,000.
Re:Blockchain startup R3 sues competitor Ripple
by justjonathan on Saturday September 09, 2017 @06:54PM
(#15209565)
That's great in theory, but in practice that's not what happens, because new orders influence existing orders, and cause additional new orders to be created. Much smaller sales can in fact, and to do, cause much larger price movements.
You can look at the market depth on various exchanges:
http://bitcoinity.org/markets/bitstamp/USD
For instance, if you dump $10M worth of bitcoin on Bitstamp, the price will shift by only $270, and that's ignoring the hidden limit orders. And the market will react to it as well - cheaper coins create more demand.