How much BTC would you need to buy to increase the price by 1 percent?

Damian

New member
Hi Everyone!

I had an interesting question I was thinking about the other day. Essentially, how much Bitcoin would you need to buy in order to increase the price by 1%.

I decided to investigate by taking a recent situation as an example. I summarized my findings in this article here:

How much would it take to pump Bitcoin 1%

I would love to hear your thoughts! Do you agree with the study? Is there any additional information you think should be considered?

Looking forward to the discussion!
 

Ronan

New member
I wish you would put a small summary of the content in the blog/article you are trying to link. It would make it easy for one to know if the article is of their interest or not. The title is usually not enough.

Note: For some reason you link isn't even working, So nothing to discuss since i have no idea what in there.
 

Mustafa

Member
Very interesting topic and I opened the link provided above because OP link shared is broken and I can open.

These big transactions might cause the whales to try to play the market price and manipulate it. For normal holders can't afford even $1M and probably only the whales can make a massive movement of Bitcoin even twice of $100M in Bitcoin that can make a 1% increased.

I think that not only buying can increase the percentage of price in Bitcoin, moving Bitcoin into another address might probably will also can cause an impact of the Bitcoin price movement.
 

Ignacio

Member
moving Bitcoin into another address might probably will also can cause an impact of the Bitcoin price movement.
Literally they have no effect on the bitcoin's valuation because it doesn't involves in trading so there won't be increase or decrease in its price but actually if a whale moves few thousand bitcoins then it will have some psychological affect on traders so it could manipulate the price if traders responds to it.
 

Jesiah

Member
An interesting read. I don't agree with your conclusion that an individual needs $91 million to move the price by >1% though. At any given time there are thousands of bitcoin locked up in various bots and orders. As we've seen in the past, a relatively small move is enough to start off a chain reaction of orders being filled, positions being opened and closed, and bots trading, which can result in very sudden price movements. You still need a significant initial amount, and the right conditions, but you certainly don't need the entire $91 million yourself.

It does highlight the folly of trading low market cap altcoins though. It doesn't take much to be able to wildly manipulate the prices of these coins.
 

Martin

New member
So an individual would need to buy BTC that's worth 91 million dollars to pump the price by 1%.
OK,but is it possible for an individual to buy BTC worth 91 million USD?The crypto whales know how to do this,but I assume that they have a team of traders and accountants and are running their crypto business under their companies.
In reality,you don't need 91M USD to pump the price.You just need some insider information or some rumors that are compelling enough to make the people wanna buy Bitcoins.
 

Cash

New member
Very interesting question but actually I don't know how to calculate this. I don't know if there is anyone that studies Bitcoin market so seriously that could make some relevant calculations. I guess that every fugure that appears here would be pure guessing although this might encourage someone to make relevant analysis. And it would be really interesting to see the final result so if market really reacted with price increase.
 

Daxton

New member
I didn't get it, it says that there was 90 million bought and 67 million sold, lets say 23 million for short and there was 1% increase. First of all we all know it will not be same all the time but lets assume for a moment that its always the same and 23 million difference means 1% increase. That means we do not need 90 million to increase right? I mean there is already some buy and sell going on anyway, we just need whatever the difference is right now and to make it 23 million.

So, let's say there is 70 million buys and 50 million sells, that means with 3 million I could make it an even 1%. Or if I want to do it all by myself, no matter what the difference is or not, I could just spend 23 million and increase it 1% more than what it is right now. I am not sure if it requires 90 million.
 

Walter

New member
hmm $91 million is a huge amount, and I think none of the whales are that aggressive to inject this sum of money in uncertain market, it's a risky trap for them to set up, people might wanna get lose if they see a 1% increase in bitcoin price. But we are seeing an increase of 1% to 2% every hour, does this mean that individuals do buy bitcoin amounting respectively to $91 million, and doubled? I don't really believe that whales don't talk to each other lol, at some point they have known each other and contacting everyone to do 1% increase.


So I'm just 0.0000001% of the 1% increased price. Poor being
Grin
 

Erick

New member
Increasing bitcoin price by 1% is mainly the work of whales the bigger boys. But certainly, no whales can use such amount of $91m to project that itself alone, its a risky move. Accumulating several amount of btc moves it.
Nobody talks about what amount of btc to sell to drop it down by -50%, if whales know this, then poor traders are in a big fish of trouble.
 

Clayton

New member
Well, it is solely considering the price movement that the link provided by OP gives tbh. Other factors can be moved aside for now, but we all know that there are still underlying factors that influence price, from influencers to market news, etc. However though, a price tag of 91 million USD to increase the price by 1% seems too high, a simple push of the market by investing even only a portion of that amount should be more than enough. As for the price itself? That would be up for debate since it isn't like the buy and sell difference remain the same for the entire market trade, they change by the minute as well.

Add that to various news that could influence others, whether it be FUD or not, you'd expect to be seeing a huge change in price. It's like a stack of stuff piled upon each other, a single quake may not be enough to topple it down, but multiple ones of varying degrees could immediately show changes with its structure.
 

Brady

New member
I like your theory here but it doesn't necessarily mean you need over 90 million dollars to pump Bitcoin by 1% because technically you took your calculations in the wrong way and that is combining the top crypto exchanges where you don't necessarily need to do so because Bitcoin can be pump in just 1 exchange where you can effectively used lesser money to pump Bitcoin by 1%. Maybe create a new kind of article where you show the prices on how much people need to pump Bitcoin on each exchange rather than combining all of them.
 

Tobias

New member
one thing that is usually neglected when talking about this particular subject is the timing and timing is everything in a market specially one like bitcoin's.
take 2017 for example. we had multiple cases of a lot of whales trying to supress the rise and sell to crash the price and prevent its rise but they lost a lot of money without the price ever changing its upward direction. looking at the orderbooks at that time would have shown a small support that could theoretically be broken easily but realistically it was a lot bigger.
why? because the time was time of rise and any drop meant a huge surge in number of buys that didn't exist before.
suffice it to say that it is the same for rise too.
 

Arlo

New member
I apologize for the broken link, it has been fixed now!

I agree with a lot of the discussion here. The markets are always changing, so the amount it takes to move the market 1% will change over time. Maybe there is a way we could study how much it takes to move the markets over time? Would anyone be interested in a study like that?
 

Karson

New member
Plenty of platforms provide this functionality built right in, so you can easily see how much volume is needed to move the price by X%.

Taking a look at Decentr for example:

https://www.coingecko.com/en/coins/decentr#markets

We can see that the +2% depth is currently $7,537, whereas the -2% depth is $7,514. By halving this you can get a rough estimate of what the -1% depth is in either direction for your exchange of choice.

Simply change Decentr to whichever coin you're trying to analyze, e.g. Bitcoin:

https://www.coingecko.com/en/coins/bitcoin#markets

Ethereum:

https://www.coingecko.com/en/coins/ethereum#markets

etc.
 
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