HairyMaclairy
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Degenerate bull hatter & Bitcoin monotheist


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January 28, 2018, 10:42:57 PM
Merited by Last of the V8s (1)

Here is my theory - posted here so people can pull it apart and make me smarter by pointing out my errors !

Like it or not, Coinbase / Gdax is a primary fiat gateway.  Fiat flows into crypto through Gdax and also flows out through Gdax.  During the rush to $19k, Gdax was often $500 ahead of Bitfinex and Bitstamp who had to be dragged kicking and screaming through arbitrage upwards.

Now we see a $500 gap in the other direction.  Bitfinex is trying to soar but Gdax is dragging it down through arbitrage.  The theory is that there is a net outflow of funds from crypto.

The test for my theory should be that the order books on Bitfinex should be shrinking - I have not tested this yet.