As Bitcoin exchanges deliver ever-widening spreads, price performance is beginning to make experts nervous.
As Bitcoin steams on towards $2,000, spreads among exchanges are also widening, leading users to search for underlying factors.
Data from Coinmarketcap shows that from a spot price of $1,535 at press time, one Bitcoin nevertheless cost $1,617 on Bitfinex, $1,573 on Coinbase’s GDAX, $1,568 on Japanese exchange Coincheck and $1,558 on Kraken.
While Bitfinex’s banking woes are contributing to its higher price, the variety of trading points available means users can not only secure a poor deal but even perform cross-exchange trades for profit.
A glance at Bitcoin exchange price performance reveals further insights.
From close spacing seen in the first half of April, exchanges began drifting apart as Bitcoin approached new all-time highs of $1,300 without the volatility witnessed in early March.
Bitfinex’s separate case is clearly visible, yet both BTC-e and CEX.io are noticeably cheaper per coin than the majority of mainstream operators.
At the same time, despite mixed reactions to Bitcoin’s speedy advances, the overall trend may not be as alarming as some fear.
Commenting on price trajectory, entrepreneur Tuur Demeester noted Thursday that even post-$1,500, Bitcoin was still within the long-term ‘corridor.’
— Tuur Demeester (@TuurDemeester) May 4, 2017
Nonetheless, the future remains uncertain, with Demeester adding he was “quite sure” another Bitcoin bubble would emerge.
“Though it will differ from 2013 in several respects,” he said without giving specific details.