Someone wants to buy a lot of BitCoins and not many people want to sell them.

I think too, that as more people know about it, the value will go up. It's been covered in a few online sites lately.

I think because of whats going on with the US dollar.  Look at the prices of energy, food, and gold and silver.   

Folks are getting out of the dollar.   

LOL...you knew someone was going to cite the Elliot wave.  I think in reality, most people that are putting some money into bitcoins understand that it could collapse at any time and hence only put in what they're willing to lose.  The flip side of that is that they're also not in any hurry to sell (and probably think bitcoins have enormous potential that far outweighs the risks of losing the small amount they've put in).  In addition, you probably have new people discovering bitcoins that reach similar conclusions and want to build a position.  And, at this early stage a wealthy individual or two that are willing to put a significant amount into bitcoins can really drive up the price (but it could fall just as quickly when they stop buying).

well I'm just trying to only deal in bitcoins, which avoids a lot of problems trading in and out of the currency. Although it helps that I mined 1000btc before it became too difficult.

This might account for about %5 of it.

And a half million dollars.

Well, if they buy at $1.10 and the price doesn't rise to $1.20, I guess that makes them an investor.

Does it matters?

I think it does.

People look at the volume and say that half-a-million dollars have been dumped into the bitcoin economy in the past month.  And that provides some level of confidence about the bitcoin economy.  But that number could be very misleading.  It could be nowhere near that much.

Also, if a majority of the transactions are quick-money day-trading then a bubble is being created.  Sure there will be some of this on any exchange, but if it's a vast majority of the trades the same people who are racing to make quick money now will be racing to sell when they decide to cash out.

I'm personally not concerned if BTC hits 2 USDs in the next month.  I'm more concerned that it isn't worth 0.02 USD two years from now.

To be clear, I'm not saying that the exchange rate and volume are misleading, or that there is a bubble, but it's just something I'm concerned about as I see the exchange rate skyrocket.