At about 7 pm CAT (Central African Time) yesterday, I noticed that the BTC price on Bitfnex was more on par with other exchanges. I had to do a double take. I thought there must be some mistake. One had to wonder, is it the price premium outcry or something else that has made this happen. I could think of no reason. Some of you may recall that my last blog piece was precisely about the Bitfinex BTC price premium. Historically, there has always been a more visible difference when it comes to Bitfinex and other exchanges.
I began to reconsider my earlier thoughts. What really has brought about the shrinking Bitfinex BTC premium? I thought of a few reasons that may have brought this about. Earlier in the week, Bitfinex made an announcement on receiving both hard and soft commitments of a $1 Billion towards its’ exchange token. This was according to one of the shareholders involved in the process. Could this be one of the reasons? Let us not forget the outcry by many in the crypto community. Might this have been another reason?
We must also think about Bitcoin volatility. Recent prices surges will as they do even up the costs across the different the crypto exchanges because of an increase in demand right across the board. Might there be something else we are not considering or is there just a simpler explanation? Maybe there is an easier explanation but then again your guess is as good as mine.
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