Is Bitcoin's Liquidity Improving?

Today, a $50,000 purchase of Bitcoins on Mt.Gox would move the price from $2.46 to $2.60, a 5.7% increase. A sale of $50,000 worth of Bitcoins would take the price down to $2.30, or a 6.5% drop.

On October 16th, a $50,000 purchase would have moved the price from $3.40 to $3.92, a 15.3% increase. A sale of $50,000 worth of Bitcoins would have taken the price down to $3.03, or a 10.9% drop.

Unfortunately this is all the data I have, but it definitely seems, from the type of trading action we've been seeing, that it's taking a lot more capital to move Bitcoin's price in either direction. Are we starting to see the realization of the second Wagner Criterion?

Posted in: liquidity,trading