why is there an $8 USD spread between BTC-e and Bitstamp?

[go1111111]

We all know why the USD value of BTC on MtGox is so high, but I haven't seen any discussion of why there's been a large difference (currently $8) between Bitstamp and BTC-E lately.

I used to use campBX and am now in the process of switching to either BTC-e or Bitstamp because of the current lack of Dwolla-->CampBX transfers. I'm trying to decide which to use (as a US citizen myself). If I look only at the price, it seems I should use BTC-e. I figure there must be some reason I don't understand why this spread exists though.

-Is it a lot harder to get USD out of Bitstamp than out of BTC-e? (this is the "MtGox hypothesis")

-Is there something sketchy about BTC-e that I'm unaware of that's causing this? I was able to find some videos of the Bitstamp CEO and saw that he's somewhat active in the community. The people who run BTC-e seem more mysterious. Maybe people are less willing to keep their bitcoins on BTC-e because they're afraid they'll get stolen, so the supply of bitcoins is artificially low on BTC-e, driving the price up?

Anyone have other ideas?

[BitAddict]

I'm not sure if there is any problem. I just guess it is for the price rise + weekend. For both reasons there is not enough fiat money in BTC-E... but don't worry by monday-tuesday I guess it will be nearly the same again.

[Birdy]

I've read that getting dollars into BTC-e is quite costy/annoying, so it's more like the opposite case to Gox.
Haven't used that exchange myself, so I cannot confirm it though.

[Taras]

Perhaps we should ask why it's not an opportunity for arbitrage.

And if it is, why is it still so far apart?

[go1111111]

Yeah. If things were perfectly frictionless and immediate, then anyone wanting to sell BTC would transfer them to Bitstamp and sell them, and anyone wanting to buy BTC would transfer their dollars to BTC-e and buy them, until the prices equalized. So I'm wondering what is keeping people from doing this, and hoping the answer gives a clue about whether I should wire my USD to Bitstamp or BTC-e.

[bbit]

Yeah. If things were perfectly frictionless and immediate, then anyone wanting to sell BTC would transfer them to Bitstamp and sell them, and anyone wanting to buy BTC would transfer their dollars to BTC-e and buy them, until the prices equalized. So I'm wondering what is keeping people from doing this, and hoping the answer gives a clue about whether I should wire my USD to Bitstamp or BTC-e.

BTC-e is awefull for depositing money I believe?

[ralree]

I've read that getting dollars into BTC-e is quite costy/annoying, so it's more like the opposite case to Gox.
Haven't used that exchange myself, so I cannot confirm it though.

It's this - I know from personal experience.  Has always caused a spread like that.  Getting money in routinely costs 3% or so.

[seafarer124]

More info here:

https://bitcointalk.org/index.php?topic=277609.msg2964592#msg2964592

[bigasic]

I've read that getting dollars into BTC-e is quite costy/annoying, so it's more like the opposite case to Gox.
Haven't used that exchange myself, so I cannot confirm it though.

THis, i was going to send some money over to btc-e and the fees were outrageous. So, Ill probably stick with campbx as they will have an ach deposit solution by the end of november.  CAnt beat a deposit for 2 bucks.... but i guess we shall see how they  actually do it..

[Shallow]

Who knows? The exchanges always fluctuate randomly.

[ajw7989]

btc-e fees are pretty high if you look at any of their withdrawal methods except if its in BTC. I think these are the main reasons but also its an exchange so supply and demand. Campbx and coinbase base their data off bitstamp exchange so that is why its similar.

[xypos]

Yes the main reason is that it is really hard to have usd in or out btc-e, and the fees are high.
So, bitstamp is much more convenient. And in the end, it might even be cheaper.

[johncarpe64]

Due to the high transaction fee, $8 is too low for arbitrage. Maybe if its like $15..