Many members of the crypto community have noticed that lately the price of the first cryptocurrency trading platform Bitfinex is somewhat higher than many other bitcoin exchanges.
So, at the time of writing is trading BTC on Bitfinex at $6381:
At the same time, on the Bitstamp bitcoin price is $6240:
Thus, the difference is $141, or about 2%. In the opinion of many, this situation creates an opportunity for arbitrage transactions.
Why bitcoin is more expensive on Bitfinex?
The majority of cryptanalysts believe that the reason for this discrepancy is the course most popular stablon Tether, which is now quoted below $1:
As you know, Tether Ltd. — associated with Bitfinex company. Recently, analysts Chainanalysis published a study which States that newly issued coins USDT come first on Bitfinex. Then 80% of coins moved directly on several stock exchanges, the host USDT: Bittrex, Poloniex, Huobi, OKEx, Binance and Kraken.
A Twitter user under the name Von notes that a serious deviation rate USDT from the target $1 commenced on 9 October.
As the premium of $USDT over $USD continues, Bitcoin bought on exchanges Tether is able to be sold for less on exchanges with $USD (and withdrawals to banks)
Current $125 difference pic.twitter.com/02c3PhGHlb
— Von 🦇 (@Von_Crypto) 13 Zhovtnya 2018 R.
Two days later, on 11 October, the exchange rate USDT traded for bitcoin on Bitfinex, Poloniex Binance and became significantly different from values at Coinbase, Bitstamp, Bittrex, where the first cryptocurrency was trading in tandem with Vietnam dollar. Note that Bittrex has started to support Fiat currency relatively recently.
Why cheaper USDT?
Journalist Joseph young notes that the depreciation of the Tether is due to three causes:
- investors began to sell USDT to get new and the “best” (controllable and adjustable) stablename such as Gemini and Pax USD;
- capturadora sell USDT to buy bitcoin and Ethereum;
- the problem with banks serving Tether Ltd.
The head of the largest trading volumes of crypto currency exchange Binance Chanpen Zhao posted a screenshot of the chart where you can see that they are linked to USD stablon PAX is quoted higher than its largest competitor USDT.
Regulated stable coin lol pic.twitter.com/5SRMhhh32Y
— CZ Binance (@cz_binance) 13 Zhovtnya 2018 R.
Clouds are gathering over Bitfinex?
As for the problems with Bitfinex, yesterday, 13 October, the representative of the exchange of Kasper Rasmussen confirmed the information about suspension of accepting Fiat currencies. He also expressed confidence that the problem will be resolved within a week.
Meanwhile, the Twitter account Auditcarlo whose profile stated that he is a former Finance Director Bitfinex, has published a screenshot where you can see that in dollar terms the balance of the bitcoin wallet exchanges for the first time since 2017 was less than $1 billion:
Bitfinex Bitcoin wallet is currently valued at under a billion dollars for the first time since 2017. pic.twitter.com/YkbiU9schg
— 📖Auditcarlo📖 (@CasPiancey) 13 Zhovtnya 2018 R.
Recall unconfirmed information that Bitfinex has stopped accepting deposits in US dollar, Euro, Japanese yen and British pound appeared in the Thursday, October 11. Then bitcoin and the entire cryptocurrency market has experienced a rather sharp decline.
Shortly before this the occasion for a new wave of rumors about the possible insolvency Bitfinex was the news about the problems in Noble Bank, presumably the service account exchanges and Tether Ltd.