Bitfinex Price Spreads & Bitcoin Bubble

[mynhpark]

One week has passed since bitcoin exchange Bitfinex announced issues with banking partners and halted fiat withdrawals for its customers. Since then the price of bitcoin has been rallying upwards reaching new highs across global exchanges. As the price surges, Bitfinex prices have been $100 higher than at other exchanges, making traders worrisome a bubble is forming. Some say, once the exchange withdrawal issues get resolved, or a bearish event hits (such as an exchange liquidation), bitcoin’s price is likely to drop aggressively since it’s currently artificially inflated.

Do you think a Bitcoin bubble is forming?

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[stompix]

Well, let's assume the worst for bitfinex
Then it's already to late, the bubble is formed and it's gonna go bananas.

Let's assume the best, no problems with any exchange (including china).
In this case , no bubble.

So the bubble is already formed or it doesn't exist at all, and all we can do right now is making more popcorn and watch it unfold.

[joshy23]

Bubble has form already. Look at the current price on bitfinex its much higher as compare to other exchanges. The bubble is already there and willing to be burst any time soon. A lot of people are now waiting for it to burst then they will buy assuming the price of bitcoin is below $1000 after the burst.

[italianMiner72]

Bubble has form already. Look at the current price on bitfinex its much higher as compare to other exchanges. The bubble is already there and willing to be burst any time soon. A lot of people are now waiting for it to burst then they will buy assuming the price of bitcoin is below $1000 after the burst.

i don't think bitcoin bubble will burst soon & easily...
and if this will be, there will be a new coin who will replace bitcoin for sure!!!
this is a great business...and who is already invested heavily, don't want to be kiked off...

[Rinder]

The issue at bitfinex will remain to the most of the members, since they havent a solution to fiat currencie anymore, soo even selling expensive to someone that is willing to get fiat there, with a solution to fiat cashouts those money will be frozen, a bubble has already started, if the exchange has a solution already and is taking advantage to sell their bitcoin expensive then the market its another question.

[jjacob]

There could be problems at Bitfinex, but the price at other exchanges is healthy as well. So the positivity is not restricted to Bitfinex alone. The current price seems to have widespread support.

[X-ray]

The issue at bitfinex will remain to the most of the members, since they havent a solution to fiat currencie anymore, soo even selling expensive to someone that is willing to get fiat there, with a solution to fiat cashouts those money will be frozen, a bubble has already started, if the exchange has a solution already and is taking advantage to sell their bitcoin expensive then the market its another question.

All of the solutions depends on the bank decision. They have tried to take some decision regarding his problem but it will take a lot of the time. The fiat balance will be frozen on the bitfinex exchange site if their bank account will have got permanent blocked by the bank.

The possible think is about use altcoin to cashout his money, but more volume will flow to the outside. and it's really bad.

[Iranus]

The price on Bitfinex doesn't show a bubble.  That's a completely irrelevant price because of their banking troubles.

There is pretty much a bubble right now, because no fundamentals have changed which would warrant such a dramatic price rise.  The price spreads don't matter to this except that there would be a huge decrease in investor confidence for Bitcoin if Bitfinex were to stop processing Bitcoin withdrawals/collapse in general.

[italianMiner72]

The price on Bitfinex doesn't show a bubble.  That's a completely irrelevant price because of their banking troubles.

There is pretty much a bubble right now, because no fundamentals have changed which would warrant such a dramatic price rise.  The price spreads don't matter to this except that there would be a huge decrease in investor confidence for Bitcoin if Bitfinex were to stop processing Bitcoin withdrawals/collapse in general.

i don't think so...
this could be the case at the moment of the news..
but bitcoin will be able to Rebirth from its ashes..
this is already happened... i remeber MT_Gox...
all seemed "This is the End"...
but now we are at 1330$
.."To be continued"

[JakaE]

Anyone have an explanation for the spread in Bitcoin price in USD/EUR at BitStamp? The EUR price seems to be lagging a lot today.

[leowonderful]

The price on Bitfinex doesn't show a bubble.  That's a completely irrelevant price because of their banking troubles.

There is pretty much a bubble right now, because no fundamentals have changed which would warrant such a dramatic price rise.  The price spreads don't matter to this except that there would be a huge decrease in investor confidence for Bitcoin if Bitfinex were to stop processing Bitcoin withdrawals/collapse in general.

i don't think so...
this could be the case at the moment of the news..
but bitcoin will be able to Rebirth from its ashes..
this is already happened... i remeber MT_Gox...
all seemed "This is the End"...
but now we are at 1330$
.."To be continued"

Well, that rebirth won't have to happen if Bitfinex gets back up and running again, which doesn't seem too likely. If they just completely shut down I guarantee you there will be a negative effect on the price, but nobody knows how far down we'll go. My guess is that if this happens the drop won't go as far as 2013's but 900s could be back again

[kwukduck]

Finex is guaranteed bust.
When it becomes public we will see a huge crash. (Mtgox will look like a joke)

With confidence destroyed and no fundamentals to make bitcoin great again it will die off slowly.
Superior coins are quickly on the rise and will probably take over bitcoin within the next months as finex drama unfolds.

[york780]

Finex is guaranteed bust.
When it becomes public we will see a huge crash. (Mtgox will look like a joke)

With confidence destroyed and no fundamentals to make bitcoin great again it will die off slowly.
Superior coins are quickly on the rise and will probably take over bitcoin within the next months as finex drama unfolds.

We missed you FUDduck, target like $400 right?

You are a buytrigger for me.
When you post its insta bulkbuy time.
Thats why you are really usefull.
The FUDduck indicator confirms me to buy.

[steelboy]

Finex is guaranteed bust.
When it becomes public we will see a huge crash. (Mtgox will look like a joke)

With confidence destroyed and no fundamentals to make bitcoin great again it will die off slowly.
Superior coins are quickly on the rise and will probably take over bitcoin within the next months as finex drama unfolds.

He's back.....lol

Nice try, surely you realise literally no one listens to anything you say. If anything you are a contrary indicator

[talkbitcoin]

One week has passed since bitcoin exchange Bitfinex announced issues with banking partners and halted fiat withdrawals for its customers. Since then the price of bitcoin has been rallying upwards reaching new highs across global exchanges. ....

STOP right there!

have you forgotten what bitcoin price was a couple of months ago, or have you forgotten how price was rising?
we have not!
price was on a very good upward trend, the trend that you are scare of right now, and it was headed towards $1300 before all the FUD about BU and splitting bitcoin into two and the use of word "fork" started.
then the manipulation started and long story short the previous upward trend was postponed to now.

right now we are on the same trend. testing the waters above $1300 and staying there for now and then headed for $1900-$2000 until the end of this year.

there may be another bump on the road when bitfinex fate is sealed, or another fluctuation in hashrates happen, but in the end we will come back on the same trend up.

[alyssa85]

There is a mini pump going on because of the ETF being reconsidered in May. Hope springs eternal!

The pump will end when the ETF gets rejected again (the problems at bitfinex guarantees it).

[afbitcoins]

Bitfinex isn't as big as Gox but its still an eerily familiar situation that I remember well towards the end of GOX.

For the million and oneth time don't hold funds on exchange (that you don't want to lose).

There is no way I'd be doing anything on finex just now other than withdrawing crypto

[mindrust]

Bitfinex shouldn't even list USD price right now. You can't list the price of that you can't deliver.

That's exactly what Gox did in the past. They listed btc for 1000$ but in truth, they didn't have the FIAT to support that price.

Finex is doing the same thing. They are listing bitcoin for 1400$ but no bank is working with them. How is that not Gox-like?

It is coming.

[talkbitcoin]

Bitfinex shouldn't even list USD price right now. You can't list the price of that you can't deliver.

well you can't just close down the market! there are two possibilities only:
1) either you are insolvent, which means closing down now means panic and people taking out what they already have in there
2) or you are solvent! which means you can't close it down, you are still making money from trades and people are still taking high risks and trusting you.

That's exactly what Gox did in the past. They listed btc for 1000$ but in truth, they didn't have the FIAT to support that price.

Finex is doing the same thing. They are listing bitcoin for 1400$ but no bank is working with them. How is that not Gox-like?

It is coming.

GOX was so freaking big that if it was around today, bitfinex with all its bigness would have been like a kid playing with pennies in front of GOX.

[bartolo]

I think the price is Bitfiniex is due to the fact that users are not selling bitcoin for fiat money because they can´t withdraw their money, so what they are doing is buying btc to withdraw their money in that way.

[maydna]

There is a mini pump going on because of the ETF being reconsidered in May. Hope springs eternal!

The pump will end when the ETF gets rejected again (the problems at bitfinex guarantees it).

i only hope that if ETF rejected bitcoin like before, the price is not getting dump because like what we already know before, after the first ETF is released, bitcoin price is not getting dump and even the price is going to go up until more than $1200 although the price is stable in $11xx-$12xx before and then the price is increase until now reach $14xx. but if one market like bitfinex telling that the pump will end when ETF gets rejected, then i am not sure that the other market will be dump the price too because there is many big holder that don't want the price is down.

[Kemarit]

I think the price is Bitfiniex is due to the fact that users are not selling bitcoin for fiat money because they can´t withdraw their money, so what they are doing is buying btc to withdraw their money in that way.

Yes is this the correct way of thinking about what is going on the price of Bitfinex right now. But the issue here is that they are creating a bubble here. I hope this is only a temporary bubble and will burst soon. The price on Bitfinex is a $100 more on other exchanges. That's why I said they are creating a bubble itself. 

With regards to Bitfinex, I think they are done already in the business. I'm feeling that it will collapse anytime soon in the face of the issue they are currently having.

[European Central Bank]

I hope everyone gets their money and then bitfinex collapses.

They're the last holdout  of amateurishNess and incompetence keeping bitcoin in the dark ages.

[Red-Apple]

I hope everyone gets their money and then bitfinex collapses.

They're the last holdout  of amateurishNess and incompetence keeping bitcoin in the dark ages.

obviously not everyone is going to take their money out of there! many traders around are more of gamblers than being normal headed human beings! and as gamblers go, they measure the odds and see there is a good chance of making a big profit against losing a lot of money. then they keep holding fiat in there.
if they come back that would be a lot of profit for selling bitcoin about 10% above market price
and if they run away, they lose all.

[TravelMug]

I hope everyone gets their money and then bitfinex collapses.

They're the last holdout  of amateurishNess and incompetence keeping bitcoin in the dark ages.

obviously not everyone is going to take their money out of there! many traders around are more of gamblers than being normal headed human beings! and as gamblers go, they measure the odds and see there is a good chance of making a big profit against losing a lot of money. then they keep holding fiat in there.
if they come back that would be a lot of profit for selling bitcoin about 10% above market price
and if they run away, they lose all.

I don't think professional trader will gamble their money in Bitfinex. The first notice that they can withdraw, they likely will do it. No point of leaving it their. Bitfinex is done and is most likely to collapse when everyone withdraw their money. You don't want to make any move that will cause to you lose more money.

[bartolo]

I think the price is Bitfiniex is due to the fact that users are not selling bitcoin for fiat money because they can´t withdraw their money, so what they are doing is buying btc to withdraw their money in that way.

Yes is this the correct way of thinking about what is going on the price of Bitfinex right now. But the issue here is that they are creating a bubble here. I hope this is only a temporary bubble and will burst soon. The price on Bitfinex is a $100 more on other exchanges. That's why I said they are creating a bubble itself. 

With regards to Bitfinex, I think they are done already in the business. I'm feeling that it will collapse anytime soon in the face of the issue they are currently having.

I think that difference in price would be important if users could withdraw their money, but that is not the case, so the price of bitcoin in that exchange platform can not have much relevance since it is a price that has no value, whether or higher if it´s lower. The important thing is the average price of bitcoin, the average price range in which it is moving in general.

[bitjoin]

Price difference now under $70, its changing pretty fast last 24 hours. Also gemini exchange volume has gone through the roof anyone know why? or just they are getting all finex customers?

[Sweetbtc]

Well, let's assume the worst for bitfinex
Then it's already to late, the bubble is formed and it's gonna go bananas.

Let's assume the best, no problems with any exchange (including china).
In this case , no bubble.

So the bubble is already formed or it doesn't exist at all, and all we can do right now is making more popcorn and watch it unfold.

Something is going on in the cryptocurrency world, but it’s hard to figure out why prices are jumping. Both bitcoin and Ether prices are currently trading at an all-time high. According to Coindesk’s price index, you could buy one bitcoin for $1,343 earlier today. It roughly represents a 6 percent increase in 7 days, and a 34 percent increase in a month.

[afbitcoins]

I think the price is Bitfiniex is due to the fact that users are not selling bitcoin for fiat money because they can´t withdraw their money, so what they are doing is buying btc to withdraw their money in that way.

Exactly

Heres some of my thoughts from pre Gox meltdown describing that exact thing https://afbitcoins.wordpress.com/2013/10/01/mtgox-price/

[Sundark]

i only hope that if ETF rejected bitcoin like before, the price is not getting dump because like what we already know before, after the first ETF is released, bitcoin price is not getting dump and even the price is going to go up until more than $1200 although the price is stable in $11xx-$12xx before and then the price is increase until now reach $14xx. but if one market like bitfinex telling that the pump will end when ETF gets rejected, then i am not sure that the other market will be dump the price too because there is many big holder that don't want the price is down.

Bitcoin ETF was nothing but empty dream we may have ETF in the future, but don't count on it and don't expect it to be soon.
After half dozen of rejections there is no need to even mention ETF anymore, market doesn't care.
Within current legal framework there is no place for exchange-traded fund based on any form of unregulated asset.

[york780]

I think the price is Bitfiniex is due to the fact that users are not selling bitcoin for fiat money because they can´t withdraw their money, so what they are doing is buying btc to withdraw their money in that way.

Exactly

Heres some of my thoughts from pre Gox meltdown describing that exact thing https://afbitcoins.wordpress.com/2013/10/01/mtgox-price/

FUD extreme.
Nice try.

Looks like you need some cheap coins.
Dont get out too early.

YORK has spoken.

[Herbert2020]

price is not in a bubble just because it goes up! more specifically when it goes up to where it is supposed to be at. price should have reached $1300 2 months ago before the BUllshit FUD started

What is the most accurate price ticker in your opinion?
I know Bitcoin Average took off Bitfinex because of what is happening with them and their price rallying...

Is it Coinmarketcap.com? Or any other?

it depends on what you are planning to do!
all these "average" sites will give you an average price, just to know what price currently is, i think that will suffice. but if you want to trade based on that data or make decisions then you should directly check the price from where you want to do the trade.
also the fastest way to check the price for me is preev.com

[stompix]

Well, let's assume the worst for bitfinex
Then it's already to late, the bubble is formed and it's gonna go bananas.

Let's assume the best, no problems with any exchange (including china).
In this case , no bubble.

So the bubble is already formed or it doesn't exist at all, and all we can do right now is making more popcorn and watch it unfold.

Something is going on in the cryptocurrency world, but it’s hard to figure out why prices are jumping. Both bitcoin and Ether prices are currently trading at an all-time high. According to Coindesk’s price index, you could buy one bitcoin for $1,343 earlier today. It roughly represents a 6 percent increase in 7 days, and a 34 percent increase in a month.

What is so hard to figure.
Bitfinex is having problems with withdraws , people are afraid they might go gox and they are trying to get their money out buy buying bitcoins.

It's an inverted gox when exactly the opposite happened.

[aeternus]

One week has passed since bitcoin exchange Bitfinex announced issues with banking partners and halted fiat withdrawals for its customers. Since then the price of bitcoin has been rallying upwards reaching new highs across global exchanges. As the price surges, Bitfinex prices have been $100 higher than at other exchanges, making traders worrisome a bubble is forming. Some say, once the exchange withdrawal issues get resolved, or a bearish event hits (such as an exchange liquidation), bitcoin’s price is likely to drop aggressively since it’s currently artificially inflated.

Do you think a Bitcoin bubble is forming?

The difference is the bubble is not that big I think that if the worst happen I think we are going to see sub 1000 prices again but then the price is going to recover again so nothing to worry about that much.

[jubalix]

so every one is madly converting fiat they have in bitfinex and then withdrawing coins then going to other exchanges....

what are the limits of withdrawal of coins/day on bitfinex?

this really does not look good.

Going to see a goxing soon especially if the they are calling in the lawyers.

It doesn't matter how solvent you are in FIAT, if the bank is freezing your funds.

[bartolo]

so every one is madly converting fiat they have in bitfinex and then withdrawing coins then going to other exchanges....

what are the limits of withdrawal of coins/day on bitfinex?

this really does not look good.

Going to see a goxing soon especially if the they are calling in the lawyers.

It doesn't matter how solvent you are in FIAT, if the bank is freezing your funds.

The question is whether they will have sufficient funds to deal with all withdrawals in BTC or ETH. In theory it should be so because after all the people who are buying BTC to withdraw are buying the BTC that another user has put on sale. The question is who is selling BTC for fiat in Bitfinex right now? Must be people very confident that the exchange fixes their banking problems.

[jubalix]

so every one is madly converting fiat they have in bitfinex and then withdrawing coins then going to other exchanges....

what are the limits of withdrawal of coins/day on bitfinex?

this really does not look good.

Going to see a goxing soon especially if the they are calling in the lawyers.

It doesn't matter how solvent you are in FIAT, if the bank is freezing your funds.

The question is whether they will have sufficient funds to deal with all withdrawals in BTC or ETH. In theory it should be so because after all the people who are buying BTC to withdraw are buying the BTC that another user has put on sale. The question is who is selling BTC for fiat in Bitfinex right now? Must be people very confident that the exchange fixes their banking problems.

You know that's a really good question....essentially the FIAT holders are trapped....I for one would be not buying fiat on their exchange.....

In one way, look upon this as a prelude to what happens when the gen pop realize how worthless their state fiat is and want to get BTC....

[stompix]

so every one is madly converting fiat they have in bitfinex and then withdrawing coins then going to other exchanges....

what are the limits of withdrawal of coins/day on bitfinex?

this really does not look good.

Going to see a goxing soon especially if the they are calling in the lawyers.

It doesn't matter how solvent you are in FIAT, if the bank is freezing your funds.

The question is whether they will have sufficient funds to deal with all withdrawals in BTC or ETH. In theory it should be so because after all the people who are buying BTC to withdraw are buying the BTC that another user has put on sale. The question is who is selling BTC for fiat in Bitfinex right now? Must be people very confident that the exchange fixes their banking problems.

Or the same kind of "investors" that bought coins while mtgox was having problems with usd withdrawals and then when the shit hit the fan were stupid enough to buy nonexistent coins at a 200 discount.

I don't care to much for bitfinex but I do hope they fix their problems. I really don't want another gox episode and probably nobody wants it right now.

[bartolo]

so every one is madly converting fiat they have in bitfinex and then withdrawing coins then going to other exchanges....

what are the limits of withdrawal of coins/day on bitfinex?

this really does not look good.

Going to see a goxing soon especially if the they are calling in the lawyers.

It doesn't matter how solvent you are in FIAT, if the bank is freezing your funds.

The question is whether they will have sufficient funds to deal with all withdrawals in BTC or ETH. In theory it should be so because after all the people who are buying BTC to withdraw are buying the BTC that another user has put on sale. The question is who is selling BTC for fiat in Bitfinex right now? Must be people very confident that the exchange fixes their banking problems.

Or the same kind of "investors" that bought coins while mtgox was having problems with usd withdrawals and then when the shit hit the fan were stupid enough to buy nonexistent coins at a 200 discount.

I don't care to much for bitfinex but I do hope they fix their problems. I really don't want another gox episode and probably nobody wants it right now.

I agree, it could be bad for the bitcion ecosystem and even when Bitfinex is only one exchange their problems could afect the reputation of all exchanges in general and create mistrust.

[jonnybravo0411]

so every one is madly converting fiat they have in bitfinex and then withdrawing coins then going to other exchanges....

what are the limits of withdrawal of coins/day on bitfinex?

this really does not look good.

Going to see a goxing soon especially if the they are calling in the lawyers.

It doesn't matter how solvent you are in FIAT, if the bank is freezing your funds.

The question is whether they will have sufficient funds to deal with all withdrawals in BTC or ETH. In theory it should be so because after all the people who are buying BTC to withdraw are buying the BTC that another user has put on sale. The question is who is selling BTC for fiat in Bitfinex right now? Must be people very confident that the exchange fixes their banking problems.

Or the same kind of "investors" that bought coins while mtgox was having problems with usd withdrawals and then when the shit hit the fan were stupid enough to buy nonexistent coins at a 200 discount.

I don't care to much for bitfinex but I do hope they fix their problems. I really don't want another gox episode and probably nobody wants it right now.

I agree, it could be bad for the bitcion ecosystem and even when Bitfinex is only one exchange their problems could afect the reputation of all exchanges in general and create mistrust.

You understand that the Bitfinex Exchange is not only engaged in exchange and provides all the same places for wallets? I think that after losing their incomes and savings, many people will not contact this exchange.

[richardsNY]

I think that after losing their incomes and savings, many people will not contact this exchange.

Normal people would definitely not return back to such an exchange. The "hack" of last year should have been the reason for people to move away from Bitfinex. Instead, people remained using it all the way till it gained back its leading position. There are many decent exchanges out there -- why do people so badly need to stick with Bitfinex? If Bitfinex happens to go down, people that decided to stay anyway shouldn't complain. They have ignored all red flag signals, and thus don't deserve any compassion.

[South Park]

One week has passed since bitcoin exchange Bitfinex announced issues with banking partners and halted fiat withdrawals for its customers. Since then the price of bitcoin has been rallying upwards reaching new highs across global exchanges. As the price surges, Bitfinex prices have been $100 higher than at other exchanges, making traders worrisome a bubble is forming. Some say, once the exchange withdrawal issues get resolved, or a bearish event hits (such as an exchange liquidation), bitcoin’s price is likely to drop aggressively since it’s currently artificially inflated.

Do you think a Bitcoin bubble is forming?

With the price as high as it is now, I think the only logical conclusion is that a bubble has formed and we must be prepared for the worst, but at the same time I don’t think the things are going to get as bad as with the Mt Gox event because bitfinex is not that big.

[aeternus]

so every one is madly converting fiat they have in bitfinex and then withdrawing coins then going to other exchanges....

what are the limits of withdrawal of coins/day on bitfinex?

this really does not look good.

Going to see a goxing soon especially if the they are calling in the lawyers.

It doesn't matter how solvent you are in FIAT, if the bank is freezing your funds.

The question is whether they will have sufficient funds to deal with all withdrawals in BTC or ETH. In theory it should be so because after all the people who are buying BTC to withdraw are buying the BTC that another user has put on sale. The question is who is selling BTC for fiat in Bitfinex right now? Must be people very confident that the exchange fixes their banking problems.

Or the same kind of "investors" that bought coins while mtgox was having problems with usd withdrawals and then when the shit hit the fan were stupid enough to buy nonexistent coins at a 200 discount.

I don't care to much for bitfinex but I do hope they fix their problems. I really don't want another gox episode and probably nobody wants it right now.

While I would like for them to fix their problems too, I think there are some that would like for bitfinex to go down hill so they can buy cheap bitcoin once again.