‘Big Buys’ on Bitfinex Exchange has Bitcoin Trading at a Premium


The world’s leading cryptocurrency shot past $10,000 yesterday in a strong move only to fall to $9,150 on Bitfinex and $8,600 on BitMEX in a sudden drop.

Bitcoin has officially failed at yet another attempt to take over $10,000. Currently, BTC/USD is trading just under $9,500 with 1.21% loss.

Following the spike in bitcoin price earlier in the day, a ”very strange” movement occurred on cryptocurrency exchange Bitfinex that has BTC trading at a $40 premium to the rest of the market.

This “peculiar price action” was accompanied by more than 3,500 BTC, $35 million volume in the 10 minutes candle, observed Coin Metrics.

“We've seen some big buys on Finex since the spike. Especially the second green candle is only on us (some users entered hard in the market…) Spreads super tight,” said Paolo Ardoino, CTO at Bitfinex and Tether.

“Felt a bit like “let me fkn enter now!,” said Ardoino about over a million dollar worth of bitcoin buy orders on the exchange

This premium has now almost completely disappeared with bitcoin now trading on Bitfinex at $9,490, $9,480 on Bitstamp, $9,477 on Coinbase, and $9,470 on BitMEX, at the time of writing.

Founded in 2012, Bitfinex offers both a spot trading exchange and an OTC market.

Bitfinex is a sister company of Tether that issues the stablecoin USDT which has been accused of manipulating BTC price in the past and is fighting a lawsuit over that.

Both Bitfinex and Tether are also being probed by the New York Attorney General (NYAG) over an alleged $850 million fraud.

It is also the exchange that has seen the biggest exodus of bitcoin from its platform. Since the March sell-off, a whopping 66.6%, 133,000 BTC has been moved out of Bitfinex.

Crypto derivatives platform BitMEX comes second at 35.6%, 105 BTC, and then Huobi with 24.6% decline in BTC balance.

This could be because investors are choosing to hold their bitcoin but in the case of Bitfinex, it’s BTC balance has been dropping long before the Black Thursday. As a matter of fact, when the March sell-off occurred, the amount of bitcoin stored on the exchange had already dropped more than 47% from its highest point in December 2018.

Besides BTC balance, Bitfinex’s web traffic has also declined by 23% in April.

The exchange, however, is the third-largest exchange in terms of US dollar volume at $0.086 billion following Coinbase and Bitstamp.

Source: CoinMetrics

Coin Metrics found that 90% of the dollar quoted spot market volume is concentrated in the top four exchanges, Coinbase, Bitstamp, Bitfinex, and Kraken.

However, unlike Coinbase that goes off online repeatedly even on 5% moves as it did yesterday, Bitfinex hasn't reported any such behavior.

Bitcoin (BTC) Live Price

1 BTC/USD =$37,327.1994 change ~ 3.09%

Coin Market Cap

$693.99 Billion

24 Hour Volume

$15.65 Billion

24 Hour VWAP

$36.55 K

24 Hour Change

$1,152.82

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