Recent reports indicate that something fishy may be going on in the cryptocurrency markets. The point in case is Bitfinex. It is believed that Bitfinex is skewing the price of Bitcoin. This has concerned the likes of CoinMarketCap to the point that it has stopped listing Bitfinex prices. I had initially thought this impossible, but on investigation, it turned out to be so. Taking a quick glance at the Bitcoin price, you will immediately see the disparity. What this means is that the Bitcoin price on Coinbase, Bitstamp. Bittrex, Gemini, and OKCoin are pretty similar. For those who love arbitrage, there are no opportunities to take advantage of. The weighted average price is $5821.43 (at the time of writing) while the price on Bitfinex is $6121.6. This is a difference of $300.17! Such a difference should be cause for concern.
New York State Attorney has also announced an investigation into the conduct of Bitfinex, Tether, and iFinex for what appears to be a series of bank transfer cover up of losses totaling $850 million. Many an analyst believes that this might bring on a new bearish sentiment in the market. That concern seems to have dissipated considering the current bullish sentiment in the price of Bitcoin.
While the disparity of Bitfinex to other exchanges has brought on some concern, a counter argument could be brought forward concerning the exchanges Coinfloor and itBit. Their Bitcoin prices are $4376, and $3547.7 as at the time of writing. This is a difference of $1445.43, and $2273.73 respectively, when deducted from the weighted average. So, what is the real price of Bitcoin? Do we really know? I suppose not, but as I have always said, your guess is as good as mine.
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