Bitcoin Forum

For the longest time, there's always been large deviations in price between most exchanges, especially BTC-e, sometimes being up to 15% lower than Gox or Bitfloor (now defunct).  Now for the last few days, the bids and asks between the 5 major exchanges have leveled out to the point that they rarely get outside of 1% of each other.  Interesting?

People starting noticing it and taking up on arbitrage opportunities. Especially BTC-E <-> Mt.Gox.

Yeah I've noticed that too. Wonder how long it will last.

There is also something to consider about BTC-e
Most guys there aren't really that interested in trading BTC, mostly alts. But only LTC can be traded for USD so in order to participate in other altcoin rallies it is necessary to have BTC. Since there is a new coin on the table (FTC) that is what my guess is. Arbitrage has been very difficult do do in the past but there can be another arbitrage method I am unaware of.

This is good. I have been using the easy deposit at MtGox to move my BTC over to other exchanges. The closer they are in price the better.

Bitstamp is now available on Bitfinex. So the arb ops are getting smaller there.

 $127 on btc-e right now  :D

It's always like that during crash times. Not sure if this one will stay at same levels but last 2-3crash it was always like that during those shaky times and btc-e would left behind when rally starts.

It's small market, pretty much controled by few traders. When prices go down they keep it as high as possible (when it was failing down in last 2 days btc-e was usually 1-2$ up) so they can sell as high as possible. When it's rally they are trying to buy as cheap as possible and at some moment block the price and it usually stays behind.

I think you are trying too hard...

"What's the price on MtGox? Oh! Wow I better set my ask higher then!"

If that mechanism alone would explain it then why was there upto 10% difference in the past, and that consistently?

The parity kind of pisses me off sometimes actually  :D

Bitstamp for example. Will adjust to the rising price on Mtgox almost instantly, however when the price goes down, it'll lag for up to several minutes at times before adjusting. Convenient right?

Sign of increasing market maturity? (lol.)

It may indicate increasing number of arbitrage operations.

Arbitrage is tricky with bitcoin though so who knows.

It's a good sign that the bitcoin market is maturing . Arbitrageurs improve markets creating a more level playing field.

Bitcoin still needs its ISO code so that it can be supported by mainstream forex firms, like xe.com and oanda.

I agree with your point about an increasing number of arbitrage operations. Many people are probably running bots at this point, the distance between prices of each exchange is nothing new and I'm sure lots of people are attempting to take advantage of it and thus bringing the exchanges closer to uniformity.

I highly doubt that a ISO code is the only reason why we don't see Bitcoin on the major forex exchanges.

btc-e - mtgox spread is rising again.

It seems it was a large investor in it to withdraw the coins from the market, he doesn't seem as sure of himself anymore since the picture is kinda bearish right now.
If I am right we shall have parity again after the bottom.
A second factor is the Feathercoin hype is over.

That's a shame. I find it really funny when Litecoin's advocates say to Feathercoin's users
"But it brings nothing new! It's just hype!"  ;D

Well it's kind of what IXcoin or IOCoin was in that respect. I wouldn't be surprised if it ends up as a merged chain into LTC, I am not against it but I don't think it's gonna join the club of major coins.
PPCoin and Novacoin probably have better prospects of staying independent coins than Feathercoin.

I read somewhere today that oanda is now listing BTC.

I think BitInstant had stopped conversions from BTC-E to MtGox for while and now they are back and the fee is only 0.89%.

They show the conversion, but I don't think you can trade them.

I am sorry for the confusion, you are right. I didn't mean to imply that you can trade them.

Good point.  I think Crypto.st (arbitrage site) is starting their private beta and it looks like it's pretty efficient.  I wonder if that's having an effect.

do you really feel like you need to tell everyone in your signature that you're gay?

do you really feel like you need to tell everyone by your postings that you're a complete moron?

Do you really feel like you need to tell everyone by your posting that you don't pay attention for months on end?

So... How about that parity.  You know, on the exchanges.