Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

SSR Mining begins drilling at Eagle Plains (TSX-V: EPL) Fisher Gold Property
By: Nicholas LePan,

Worried About Rising Rates? I Believe this Strategy Could Be the Answer
By: Frank Holmes

Is It The Trade War Threats Or Extreme Overvaluation?
By: Dave Kranzler

GoldSeek Radio Nugget: Peter Schiff and Chris Waltzek

When Is Three Better for Gold Than Four?
By: Arkadiusz Sieron

Mining Gold and Silver From Bombs
By: Rory Hall

Golden Arrow Starts Drilling at Antofalla Silver-Gold-Base Metal Project, Argentina
By: Golden Arrow Resources Corporation

Gold +1.8%, Silver +2.5% As Fed Increases Rates And Trade War Looms
By: GoldCore

Gold Seeker Closing Report: Gold and Silver Gain Roughly 2% After Fed
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 3 21 2018
By: Ira Epstein


GoldSeek Web

Bitcoin Accumulation Sighted

-- Posted Tuesday, 16 July 2013 | | Disqus

By Vincent Bressler

Bitcoin is a beautifully transparent market.  All transactions are in the public domain.  So last night I put together a chart of the USD market price of Bitcoins vs. "Days Destroyed" which is a measurement of Bitcoin monetary velocity.  Here is the definition of Days Destroyed from


Bitcoin Days Destroyed is a measure of the transaction volume of Bitcoin. If someone has 100 BTC that they received a week ago and they spend it then 700 bitcoin days have been destroyed. If they take those 100BTC and send them to several addresses and then spend them then although the total transaction volume could be arbitrarily large the number of bitcoin days destroyed is still 700.


The chart is interesting because it shows velocity tracking the USD exchange rate during the recent spike, however, now velocity and price are 180 degrees out of sync. 

Here's my interpretation of this:

During the spike up, volume increased in a rush to trade in and out of Bitcoin.  During the spike down, volume crashed as trading interest in Bitcoin diminished, and perhaps as exchanges such as mtgox were threatened and blocked by governments.

More recently, volume goes up when the price goes down. These are the weak hands exiting Bitcoin.  As soon as the volume of weak hands starts to dry up, the price stabilizes and goes up for a while, then the weak hands begin to sell again, volume picks up, and the price heads down.  This looks like accumulation, with strong hands waiting for the weak hands to cough up Bitcoins. 

Note that the Bitcoin open source community is moving in the direction of limiting small transactions.  This move will slow down the growth of the Bitcoin database and make the whole system more sustainable.    Bitcoin will become a validation system for larger and larger "reserve" transactions.  Various systems that hold Bitcoins in reserve will facilitate small transactions.   So what do I expect to see with Bitcoin: lower and lower volume on higher and higher price.    Looks like that trend has begun.

Vincent Bressler

-- Posted Tuesday, 16 July 2013 | Digg This Article | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2017 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of, its affiliates or advertisers. makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, is strictly prohibited. In no event shall or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.