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Possible, but I don't think it's likely. The volume on something like BTC is higher than AAPL. It doesn't make sense and never made sense. I don't think there a
by isoskeles 8y ago
Possible, but I don't think it's likely. The volume on something like BTC is higher than AAPL. It doesn't make sense and never made sense. I don't think there are enough people who wrote and confidently run their own crypto-HFT bots to compete with volume in the stock market.
- aeternus 8y agoIt does make sense if you look at how change addresses work with Bitcoin. Best-practice is to generate a new address for the 'change' from each transaction. Suppose an exchange has a hot wallet with 10btc. Each time a user requests a withdrawal, say 0.01 BTC, the exchange generates a txn that sends 0.01 to the user, and the remaining 9.99 btc to a newly generated hot wallet address. On the blockchain, we can't tell if that was a transaction for 9.99 btc or 0.01 btc and most of these 'analysis' services are considering both to be volume. This amplifies apparent volume even if no one is doing anything questionable. To use the AAPL example, this type of blockchain volume analysis is like adding each trader's private brokerage account value to the total AAPL trade volume each time they buy/sell a share.