Bitfinex Bitcoin Prices Spike Higher Versus Bitstamp and Others

Following on what was written earlier about Bitstamp, prices of bitcoins are soaring on Bitfinex as the exchange appears to have pulled the plug on Bitstamp Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term. Offering leveraged Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term trading, Bitfinex is one of the few trading platforms to successfully stream liquidity from other exchanges while also maintaining an internal order book. Due to offering execution on Bitstamp, pricing on Bitfinex is closely aligned to the bid/ask spreads on Bitstamp.

Currently though, spreads between the two exchanges have widened dramatically as Bitfinex has halted streaming of Bistamp prices. For reference, at 14:00 BST, bitcoins on Bitfinex are trading at around $555, versus $510 on Bitstamp, or $480 on BTC-e. The halting of Bitstamp pricing isn’t unusual, as it occurs during any period Bitstamp’s API has disruptions. However, the spike in prices elevate contrasts to prices usually staying around those of Bitstamp.

It’s worth noting that for litecoin trading, Bitfinex currently does operate liquidity internally, without the use of third party pricing. As such, moving to a completely internal order book for bitcoins wouldn’t be out of the blue for them. Overall, it will be interesting to see how volumes hold on the exchange without the existence of Bitstamp’s liquidity, and whether they can maintain their current market share which is about 5-10% of the market.