MtGOX exchange rate artificially high

[wormbog]

Check out the exchange rates, gox is substantially higher that the other exchanges:

http://bitcoinity.org/markets/list?currency=USD&span=24h

With the Dwolla account freeze, people with money at gox who rely on dwolla can buy btc and move it out, but they can't sell for USD and get their money out of the exchange. Thus, more people buying bitcoin, resulting in a higher price.

Good arbitrage opportunity for gox account holders who don't rely on dwolla.

[Zaih]

Yeh noticed that too. I'm sure it'll quickly make itself less apparent as people catch on

[Le Happy Merchant]

It was like this for most of the big rally, Mt.Gox tends to lead price.

Arbitrage is feasible, and it closes the gaps.

[adamstgBit]

can't they wire the money???

[BitcoinAshley]

It's funny, because all the noobs assumed that the dwolla freeze would drive price DOWN, WAY DOWN.

However, it is well known by most of us that some of the price difference in exchanges is due to ease/difficulty in getting USD in or out. For instance. BTC-e was always typically lower, and I'm sure the difficulty in getting USD in partly contributed to the imbalance on the buy side. And Bitfloor was INCREDIBLY easy, one simply had to walk into mordor bank of america and cash deposit, you had your USD ready to trade in 30 minutes. Bitfloor price tended to be a few dollars higher than Gox price at all times. Other exchanges also presented unique arbitrage opportunities depending on their funding methods.

Right now, we might be seeing a very slight buy/sell imbalance at Gox due to the Dwolla freeze.

But since the Gox price is used the most as reference, due to the liquidity, Department of Homeland Security's actions potentially (depending on if you believe there is an imbalance) caused the price of BTC in the most-referenced market to rise. And even if people are selling on other exchanges - it won't offset the increase because people on other exchanges have an interesting tendency to look to the Gox price for reference and confirmation of trend analysis. Gox price pulls other exchanges, rather than vice versa. Very interesting situation we have.

Noobs were wrong. I was right. What else is new?

Oh, don't forget that Gox is usually higher than the other exchanges anyways. So maybe we're just reading into this a bit too much, folks

[davout]

Noobs were wrong. I was right. What else is new?

Your Bitcointalk account.

[relm9]

With how slow Bitcoin deposits / withdrawls are on Gox right now I don't know if arbitrage would be effective.

I withdrew some BTC over 12 hours ago and it hasn't even showed up on Blockchain yet. Not sure if it's a  glitch in their system or what, still waiting on support...

[MAbtc]

Not easy getting USD out of BTC-E. And Bitstamp sell pressure is scary as hell right now. This looks pretty iffy.

[adamstgBit]

is their no way to withdraw USD out of gox,

can't they just wire money?

[N12]

is their no way to withdraw USD out of gox,

can't they just wire money?

They can. International Bank Transfers are working fine.

The price is genuinely increasing, it's not because of a "bank run". This is evidenced in that there is no major decoupling of MtGox from other exchanges. That MtGox leads the price a bit is normal.

[MAbtc]

is their no way to withdraw USD out of gox,

can't they just wire money?

If someone in the US wants fiat and is worried about Gox's immediate future, they may not want incoming wires coming from Gox. The intermediary bank accounts in the US could be ripe for seizure. Now, I'd like to think that Gox would make it right if some bank accounts got taken, but one can't be sure. Personally, I've been screwed twice by offshore payment processors (Usemywallet and ewalletxpress), who, when "my cashouts" were seized by the feds, basically said "fuck off, we don't have your money" and cut off communication. Not the same situation, but not so different.

[MAbtc]

is their no way to withdraw USD out of gox,

can't they just wire money?

They can. International Bank Transfers are working fine.

The price is genuinely increasing, it's not because of a "bank run". This is evidenced in that there is no major decoupling of MtGox from other exchanges. That MtGox leads the price a bit is normal.

What do you think about the big decrease in sell pressure on Gox, and the big increase in sell pressure on Bitstamp? I'm not sure about the other exchanges.



Have you turned bullish in the short and/or medium term?

[BitcoinAshley]

Noobs were wrong. I was right. What else is new?

Your Bitcointalk account.

You missed the part about relativity 

Naturally I am only insulting people who joined 2 weeks ago and are spreading fud about a bank run (when the Gox lead is natural, it's like people just noticed it and are attributing it to this recent DHS action)

P.S. I could be one of those people who ditches their account every few months and starts a new throwaway B)

[N12]

What do you think about the big decrease in sell pressure on Gox, and the big increase in sell pressure on Bitstamp? I'm not sure about the other exchanges.

https://i.imgur.com/luvKcBH.png

Have you turned bullish in the short and/or medium term?

I took notice of it, but the price on Bitstamp is following MtGox's. It may simply be a matter of competition with MtGox shrinking a little as people have more concern.

Bullish for the short term at least. We've overcome a major horizontal resistance.

[ineededausername]

With how slow Bitcoin deposits / withdrawls are on Gox right now I don't know if arbitrage would be effective.

I withdrew some BTC over 12 hours ago and it hasn't even showed up on Blockchain yet. Not sure if it's a  glitch in their system or what, still waiting on support...

If they're that slow, it's probably  because they're having to move BTC out of cold storage.

[smoothie]

Check out the exchange rates, gox is substantially higher that the other exchanges:

http://bitcoinity.org/markets/list?currency=USD&span=24h

With the Dwolla account freeze, people with money at gox who rely on dwolla can buy btc and move it out, but they can't sell for USD and get their money out of the exchange. Thus, more people buying bitcoin, resulting in a higher price.

Good arbitrage opportunity for gox account holders who don't rely on dwolla.

Two words for USD holders: Wire Transfer

[adamstgBit]

Check out the exchange rates, gox is substantially higher that the other exchanges:

http://bitcoinity.org/markets/list?currency=USD&span=24h

With the Dwolla account freeze, people with money at gox who rely on dwolla can buy btc and move it out, but they can't sell for USD and get their money out of the exchange. Thus, more people buying bitcoin, resulting in a higher price.

Good arbitrage opportunity for gox account holders who don't rely on dwolla.

Two words for USD holders: Wire Transfer

f that
1 word

BITCOIN

[Brunic]

What do you think about the big decrease in sell pressure on Gox, and the big increase in sell pressure on Bitstamp? I'm not sure about the other exchanges.



Have you turned bullish in the short and/or medium term?

Hahaha, what an odd situation. It look like people are buying at Mt. Gox and selling at Bitstamp to get out of the market. But since there is a lack of buyers at Bitstamp, they have nobody to sell to.

I'm curious to see how it will end.

[Malawi]

What do you think about the big decrease in sell pressure on Gox, and the big increase in sell pressure on Bitstamp? I'm not sure about the other exchanges.


Have you turned bullish in the short and/or medium term?

Hahaha, what an odd situation. It look like people are buying at Mt. Gox and selling at Bitstamp to get out of the market. But since there is a lack of buyers at Bitstamp, they have nobody to sell to.

I'm curious to see how it will end.

+283

[kokojie]

arbitriage will correct it, and if not, it's high for a reason.