
Bitcoin Is Suddenly Surging Again - jsnathan
http://www.bloomberg.com/news/articles/2015-11-02/bitcoin-is-suddenly-surging-again
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gkoberger
Evidently it's due to the MMM Ponzi Scheme:
[http://www.dailytradingprofits.com/5063/is-bitcoin-being-
pum...](http://www.dailytradingprofits.com/5063/is-bitcoin-being-pumped-by-a-
ponzi-scheme/)

Nobody knows for sure how big of an impact it's having, but it's likely not a
coincidence.

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nikolay
Which is weird. The volume has greatly increased in China, but we've never
trusted their published numbers before. This is yet another China-driven rally
- beware of the sudden drops we know very well from the painful past!

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Mandatum
Kids need their drugs for NYE/the holidays. I think we'll see this increase up
until December, and just like mail we'll see it drop off.

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arthurcolle
What is the typical behavior (behavior in terms of market dynamics, and impact
on orderbooks) of market makers in up trending markets? General question, not
specific to bitcoin.

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patio11
If the _trend_ is upwards but there are still sells, then that's pretty normal
for a market maker -- they continue executing their standard risk controls and
don't really care.

If buys _greatly_ outnumber sells and the price is surging, that is
problematic for the market maker, because that implies they're going to
accumulate a short position and start losing money on it. You should expect
them to start resizing/repricing their asks (i.e. offer to sell less at close-
to-market prices), possibly terminating their short via buying (in extremis),
and (if available) hedging their position via instruments other than the one
which is surging.

A _very rapid_ spike up is indistinguishable for market makers from a _very
rapid_ crash down: expect them to pull liquidity and wait for the market to
stabilize before reintroducing it. Their mental monologue is "Sorry, but you
guys don't pay me for this."

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Kinnard
The only surprising thing is the timing. My guess is that this has to do with
all the attention from the Economist. The fundamentals of the Bitcoin economy
have been developing at a solid pace for more than a year— they've been
swelling for months.

