Bitcoin Market Liquidity

It's not just selling your bitcoins on an exchange, it's actually getting the cash out of the exchange and into your bank account.A large volume on an exchange means there's plenty of people trading, but it doesn't mean plenty of money going in or out.I mean there are limits, so it's not like Satoshi could cash out in one go.

Hope you know Coinbase is only 8% of the total Bitcoin volume each day.https://coinmarketcap.com/currencies/bitcoin/#markets

Can you? Someone's selling the MtGox bitcoins, $400m worth, and this halved the market price: https://www.coindesk.com/mt-gox-trustee-sells-400-million-bi...Most volume on most exchanges is fake "wash trading". <a href="https://medium.com/@sylvainartplayribes/chasing-fake-volume-a-crypto-plague-ea1a3c1e0b5e" rel="nof

Sell on an exchange. The big ones have a monthly trade volume of 100k+ BTC ($50+ million): http://bitcoinity.org/markets/list?currency=ALL&span=30d Clearly $200k is a drop in the bucket for them.

You're talking about liquidity not fungability. But regardless Bitstamp's 24 hour volume yesterday was 32,799 BTC. Trading that much bitcoin is not really a problem.

Of course it's not the latter. $1bn is like a couple of days of trading volume at GDAX alone.

On GDAX the trade volume for BTC/USD is now about $1.4 billion per day. And there are other exchanges too. So yes the market could fulfill that trade. Would probably bring the BTC price down but it wouldn't be catastrophic.

Because they are traded on Bitcoin exchanges?

what do you mean? most bitcoin volume is done on centralized exchanges, so that's exactly the usual way of trading it.

Your friends theory is just a theory.As of know, on the CME, volume notional amounted to 135 million worth of BTC, whereas the total 24-hour volume on all the exchanges for Bitcoin is over 12 billion dollars.135 million / 12 billion = .01125 or 1.125%Maybe there are just more sellers than buyers.(http://www.cmegroup.com/trading/equity-inde