Bitfinex Price Spreads & Bitcoin Bubble

[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.

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[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.