This is a lie. Lots of that apparent liquidity is fake buy/sell orders that will disappear milliseconds before you manage to use them... Even a sell of $10M can move the market 2%.
I'm not sure how to cite "I placed a sell order to match an existing market order, and the majority of the market order was withdrawn 1 millisecond before my order was confirmed, as seen on the websocket message timestamps, and this happened multiple times".
IMO, probably better to say “incorrect” rather than “lie”, as the latter implies intent to deceive. While I am extremely skeptical about BTC (and even though this post is about a BTC scam), I don’t doubt the sincerity of its proponents.
You think some players are getting last look? I am very interested in this, email me if you would like to disclose more info (products, exchanges, etc where this happened).
Some volume is fake. A lot of real volume is from market makers and other bots. The rest is from people. Almost all of this volume dries up in the face of volatility. If the market moves, people wonder if maybe the seller knows something they don't, and so they pull their limit buy orders and wait. This means slippage occurs in practice more than it would appear.
Because the financial VC-industrial complex has stock piles of money now, they've learned their lessons enough times, billions of $ they control and are waiting to use to buy Bitcoin for institutional buyers; Coinbase has been promoting this service for years - and on the other end their tightening the funnel of their service by access to sell failing many times now when the price starts to skyrocket - likely to quell the impulse selling of enough of the "army of HODLers."
Will the complex have $100 billion in money waiting to buy up Bitcoin once there's such an event, or has the mantra of "HODL" worked and enough will hold to allow enough institutional money to slowly be moved in (by small handful of decision makers who's gains aren't usually well aligned with who owns the money)?
You have no idea of what the actual supply/demand and liquidity for BTC actually is.
Even if you were to aggregate all the order books of all the existing exchanges, you'd still have no idea because of the number of deals that happen OTC.
