Can someone explain to me like I’m me, how do market makers keep the price of BTC in a buying range they want? And how does their own buying in said range (at scale) not push the price significantly higher so it all just becomes a moot point.
🤷🏻♂️
Discussion
Here’s a total guess: nobody keeps the price of bitcoin any which way. Depending on the platform you can as a market order set a specific rate your offer is valid for, and when it should be deactivated.
As for the second, the term for that is “slippage”, and noticeably affects orders that are large compared to the market liquidity.
Markets usually have enough liquidity and volatility that all but the largest offers at the market value can be taken in whole without failing to fill part of the total on offer.
How’s that?
Not bad. But which exchanges are they buying on and who’s the seller?
Each exchange has its own order book.
So you and I make a decentralized exchangeX. We create a way for people to communicate with each other that they are willing to buy or sell at x price. Those are the makers. And other people can see that and choose offers to take. Miners would be one obvious seller. Anyone who has BTC but has obligations to pay using another asset. People who sell are short, people buy who are long.
Centralized exchanges:
Binance, coinbase
Decentralized exchanges:
Peach bitcoin, hodl hodl, bisq, robosats
I’m aware of this and thank you but it only emphasizes the fact that I don’t think Blackrock et al are buying BTC in bulk as they push the market lower for longer to keep accumulating. Maybe but I seriously doubt it. Direct from miners makes sense but not in huge amounts. IMO.
You’re saying the current price seems to indicate we don’t have new massive buyers? Yeah I’d agree. But how could they push the price?
They work together with large derivatives exchanges. When you know liquidation prices of people and see spot order books, you can know exactly, when losses of selling on spot can be compensated by profits from liquidations.