The most under-discussed element of the crypto markets: Bots. What they do, how much volume they account for, how they impact market dynamics
I'd love to have a thorough discussion of the impact of bots on the crypto markets, particularly the alt markets.
I suspect a substantial portion of alt trading volume is actually done by bots, and that they are responsible for the way alts make the same moves as bitcoin but exaggerated (i.e. bitcoin goes up or down $100 and every alt's satoshi value IMMEDIATELY goes up or down with it).
In fact, I think these bots have created a dynamic that is now a self fulfilling prophecy - alts behave that way because of bots, but then people set up bots to trade based on the fact that alts behave that way. And I think the people running them actually don't want everyone to realize how much of the market they make up and how they're taking advantage of it.
In any event, I am sure many of you are running bots and/or have a much better understanding of them than I do, so I pose the following questions to the community;
1) how much of alt trading volume do you think is done by bots?
2) what are the most common bot trading strategies?
3) how do you think bots are impacting market dynamics?
4) are bots responsible for the intense coupling, i.e. extremely high correlation between bitcoin movement and alt coin movement (on a satoshi basis - I'm not talking about alt fiat value going up because bitcoin went up)?
I think getting a better understanding of what bots are doing would be helpful for everyone investing in/trading cryptocurrencies.
Thanks!
[link] [comments]
from Cryptocurrency news and discussions. http://ift.tt/2HIjQLe
No comments: