Coinmarketcap.com shows the trading volume, along other
interesting stats, for most digital currencies. The daily volume
for bitcoin, calculated as the sum of volume for all major
exchanges, is millions of dollars. Some days it has reached more
than a hundred million dollars, but normally it is more like ten
million.
Keep in mind that the volume is inflated by robots trading back
and forth. What is more interesting is the how much fiat that gets
converted to bitcoin and vice versa. If the sum of all dollars
deposited at exchanges is X, then the amount withdrawn shall
also be X. If the sum of of bitcoin deposited is Y, then the
amount withdrawn shall also be Y. If an exchange does not keep
this basic balance it will face liquidity problems and eventually
lose trust as people will be unable to withdraw funds. The price
of bitcoin must be X dollars divided by Y bitcoins.
If you are able to foresee the change of these flows, you'll be
able to predict the price. It's easier said than done, and I will
only share some suggestions on what to look for.
