d_eddie
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March 08, 2019, 03:21:29 PM

w00t, 4k broken on bitfinex

edit: bitfinex is much more pleasant then bitstamp, the prices are hodler friendlier their.  Grin

We don't use bitfinex here.

I see that you have heard of bitstamp... right?   Tongue Tongue

I still don't understand what keeps Bitfinex steadily above the other exchanges by about $100... I know they are the biggest Tether exchanger, but it seems like people should have been able to find non-USDT ways to arbitrage their price down to an equilibrium after all these months.

Current prices

Bitfinex: $4003
Bitstamp: $3893
Kraken: $3895
GDAX: $3897

Huh something doesn't add up here

The arbitrage with Bitcoin to fiat is very risky. First, Bitfinex is nothing like the US exchanges (which are under the supervision of SEC) and is known with their "hacks" and "bank problems". This means your money can be stolen and you can't do anything about it. Second: if you buy at Bitstamp and transfer the Bitcoins to Bitfinex, you have to wait several hours during which time the price may dip. And finally, you are allowed to withdraw fiat only once per month a sum less than 1 mil$. Otherwise, you have to pay 3% fee. And since USDT is traded 2% higher than the USD, you are not able to withdraw on a profit USDT. Speaking of arbitrage, it is better to use ETH or other alt, because they are faster. But the premium is smaller, I think 1.5%. Anyway, it is not worth the risk IMO.

Edit. This does not mean that there are no people who take advantage of this arbitrage possibility. I am sure most  of the miners prefer to sell in Bitfinex to have a bit bigger profit. And since the volume is very low recently like 1.8K for a time last Sunday and 6-7K like today, this may have a significant negative impact on the price. If the price is the same, not many miners will risk to use Bitfinex. So for me, the sooner this gap is closed, the better.
Sharp analysis! Are you a (former) miner by any chance?