I believe the widespread use of Bitcoin Trading Bots is having a significant impact on price stability. In the past 30 days, under 1% volatility and under 1.5% volatility in the past 60 days. This is right in line with low-volatility currency pairs in foreign currency exchange markets.
Here is the Bitcoin Volatility Index for April 24, 2016:
Far from being methods of automating wealth extraction from the market, they assist in maintaining true price and resisting price changes even when rather large volumes of trading are occurring.
While many have programmed their own bots, there are several commercially-available bots that perform the basic function of buying or selling based on changes in the market price.
Storing bitcoin in a cold or offline wallet takes liquidity out of the system, whereas trading them on an exchange adds liquidity to the system.
I have been testing out a couple of bots recently, and am still searching for one that fits best with my trading style.
If you have a bot to recommend, please do introduce it in the comments below.