Category Archives: Bitfinex

Bitcoin Price Fails to Maintain $4,600 Level but Upward Momentum is Still Intact

Things aren’t looking all that great for most cryptocurrencies over the past 24 hours. With the Bitcoin price making a major leap over the past 24 hours, nearly all altcoins are in the red of at their breakeven point. While Ethereum, NEM, and Dash are exceptions, most people will keep a close eye on the Bitcoin price chart. There is some resistance across exchanges, although, as this $4,550 price point will be contested for quite some time to come.

Bitcoin Price Struggles for Control at $4,550

It has to be said, yesterday’s Bitcoin price jump took a lot of people by surprise. Although it was only a matter of time until the Bitcoin price would see a big move upward at some point in the future, no one expected such a  sharp rise all of a sudden. Despite the current price change reflecting only 3.22%, it is the first time successfully broke $4,600 yesterday, albeit the momentum didn’t last all that long. Every new all-time high for Bitcoin will be met with a lot of selling pressure across all exchanges, by the look of things.

That being said, the main question is whether or not the Bitcoin price can maintain this momentum it has right now. After getting pushed down from $4,600 once again, there have been a few big sell-offs in quick succession. The dips are being bought up quickly and it seems order will be restored sooner rather than later. Right now, the price on Coinmarketcap hovers around $4,531, whereas most exchanges are trading at just above $4.545. It wouldn’t be unlikely to see another major BTC price bump later today.

Interestingly enough, the leading exchange by 24-hour trading volume is Bitfinex. It has been a while since this particular exchange held such a prominent position in the Bitcoin market, even though the company has always been pretty solid in this regard. It’s good to see fiat currency trading markets at the top of the rankings, as converting altcoins to Bitcoin and vice versa doesn’t bring “more” value to the overall cryptocurrency ecosystem

OKCoin is also showing a growing appetite for Bitcoin right now. Third place goes to Bittrex, although it appears some market manipulators are trying to pump -or dump – the NEO price once again. That particular altcoin market has seen a fair few ups and downs over the past few weeks and it seems that situation will not change anytime soon.Right now, the NEO market is turning very bearish, indicating a lot of initial investors are converting their holdings back to Bitcoin thanks to this recent price increase.

As is often the case, there is no real reason for this Bitcoin price increase. No major news has been announced whatsoever. It appears a lot of people are using technical analysis to project the future Bitcoin price. As long as enough people follow other users’ guidelines, those movements will occur given enough time and money. Speculation is running wild as far the Bitcoin price is concerned, that much is evident. No one knows if we’ll see more upward momentum or a massive correction down to $4,000 or lower.

All things considered, the Bitcoin price momentum is still there, although it becomes more difficult to make any big changes. The $4,500 – $4,750 price points will be contested for quite some time to come, as both levels present major hurdles for Bitcoin to overcome. With so many people speculating on the potential outcome of this momentum, things aren’t clear-cut by any stretch of the imagination.

Bitcoin Market Report: $BTC Price Strong as New Alt Looms

Brief:


Bitcoin’s price is strong as a new alt looms. Bitcoin is down -4.38% on the day, down -6.39% on the week and up 7.71% on the month on a last price of $2662.80. $BTC/USD is trading between a 24hr high of $2734.90 and a 24hr low of $2582.90 on a 24hr volume of 18,437k. The weekly trend is mixed.

Contents

Last price

2662.80 $BTC/USD

$USD

last price $ 2662.80
one week ago $ 2844.70
percentage -6.39%

Volume

Volume

The 24 hour volume on Bitfinex is 18,437k.

Remarks

The price of Bitcoin remains strong as a hard fork and resulting new alt coin loom on August 01 2017. Bitcoin is down -4.38% on the day, down -6.39% on the week and up 7.71% on the month on a last price of $2662.80.

World’s Largest Bitcoin Exchange Registers Their Thoughts on New Alt Coin
“Although several months ago, we developed a methodology for handling contentious hardforks, we will be applying a different methodology for what we regard as a spurious forking of the Bitcoin project with little mining support.”

https://www.bitfinex.com/posts/212/review

Poloniex Weighs In
The world’s largest ether exchange wades in on the impending bitcoin hard fork:

https://poloniex.com/press-releases/2017.07.24-Our-plans-to-handle-potential-BTC-network-disruptions/

“We take no position on the desirability of any particular proposal nor do we have a stake in any outcome. Our primary concern is protecting our users and their tokens.”

The Poloniex perspective is a fresh and invigorating outlook inspiring confidence in their trading offerings. Shouldn’t customers always come first?

Take a look at Poloniex: https://poloniex.com

Or follow @Poloniex on Twitter: https://twitter.com/Poloniex

CoinMarketCap YTD Chart

Six Hour Chart

Bitcoin Market Reports
Browse $BTC dynamics with our Bitcoin Market Report collection:

Bitcoin Market Reports

XBTLivePrice
Bitcoin spot prices from four major exchanges at print time:

Bitcoin on Poloniex is $2685 up 0.26% over twenty-four hours.

Yesterday

Bitcoinity’s Exchange Market Share for July 2017 – All Currencies
The top three bitcoin exchanges for “all currencies” are Bitfinex, Kraken and Bitstamp. The “other” pie slice actually holds down number three position and Bitstamp is number four. This ranking shows the significant weight of lesser known exchanges.

Bitfinex.com has 18.59% share of all bitcoin traded in July.

Bitcoinity’s Exchange Market Share for July 2017 – BTC/USD Only
The top five exchanges in July trades of the popular $BTC/USD currency pair are:

bitfinex 888k 32.06%
bitstamp 430k 15.53%
coinbase 418k 15.10%
gemini 415k 14.97%
kraken 247k 8.92%

Altcoin Market Reports
We publish recent and topical Market Reports on many altcoins. Browse our extensive collection of Altcoin Market Reports.

Price change

Price change is the percentage change within the period:

period change
day -4.38%
week -6.39%
month 7.71%

Featured Chart

Tap or click chart to enlarge:

Data source

50.png

Bitfinex is the data source for this market report – except as noted.

Market capitalization

Market capitalization is the total $US dollar value of the Bitcoin market calculated using the formula:

market cap = ( circulating supply x last price )
Market cap $ 43,878,316,054
Circulating supply 16,478,262
Last price $ 2662.80
Circulating supply data courtesy of CoinMarketCap.com.

Daily High Low

daily high 2734.90
daily low 2582.90

Trend

The weekly trend is mixed.

trend is MIXED

Support

Support is the lowest price within the period:

period support
day 2582.90
week 2404.00

Resistance

Resistance is the highest price within the period:

period resistance
day 2734.90
week 2917.00

Margin trading

yes

The data source Bitfinex offers margin trading on this digital asset.

Range

Range is the difference in price within the period:

period range
day 152.00000000
week -181.90000000

Market sentiment

Market sentiment is neutral.

sentiment neutral
Image courtesy Pixabay.com

Summary

Bitcoin price is strong as a hardfork and new alt looms. Bitcoin is down -4.38% on the day, down -6.39% on the week and up 7.71% on the month. The weekly trend is mixed. $BTC/USD saw weekly support at $2404.00 and weekly resistance at $2917.00. Market sentiment is neutral.

Disclaimer

Past history is NOT an indicator of future results. Read the legal disclaimer:

http://kittybitcoin.com/docs/disclaimer.php

Printed

This report was printed on Sunday July 30 2017 14:08 hours UTC. Contact KittyBitcoin to request custom reports. Share your thoughts with @KittyBitcoin on Twitter.

Thanks for reading! 🙂

Tags

Bitcoin, $BTC/USD, Bitfinex, Brief, Last price, Volume, Remarks, Price change, Chart, Data source, Market capitalization, Indicators, Daily high low, Trend, Support, Margin trading, Resistance, Range, Market sentiment, Summary, Disclaimer, Printed, Coming soon, cryptocurrency, bitcoins, BTC, altcoins, investing, trading, speculation, coins, investment, digital, assets, tags

Exchanges Bitfinex and BTC-e Under DDOS Attacks, As a Result Bitcoin Price Falls to $2424

Leading bitcoin exchanges report that they have suffered from cyberattacks this week.

On Monday, BTC-e exchange said its systems were attacked, which resulted in the website temporarily going down. The news was announced in the tweet that was later deleted and the website showed trades going through.

The next exchange that appeared under the threat is Bitfinex that yesterday informed about distributed denial-of-service attacks, or DDoS, that attempted to paralyze the system with a flood of information.

The attack followed a similar one occurred on Tuesday morning. Bitfinex needed one hour to solve the problem and the exchange returned to regular operation.

Chris Burniske, blockchain products lead at ARK Investments, explained that the attacks are “not surprising” taking into account the bull cryptocurrency market. “There’s a big difference between a denial of service attack, and a hack that causes clients to lose funds,” he said. “As of yet, we’re fortunately not seeing any of the latter.”

Indeed, we currently observe unprecedented boost of investor interest and record-breaking levels of fundraising for new cryptocurrencies. Experts are concerned that the largely unregulated cryptocurrency industry might not be able to manage the hype.

“Investors with assets on centralized cryptocurrency exchanges should be careful. The track records of these organizations are not good, and as the assets on the exchanges grow, so does the bounty for attacking or hacking them,” said Benjamin Roberts, co-founder and CEO of Citizen Hex, a digital currency trading start-up backed by three Canadian venture funds.

Roberts as well as other digital currency analysts warn that cyberattacks can allow the attackers to manipulate the bitcoin market. Since several major exchanges located around the globe set the bitcoin price, temporary disruption of a single exchange can allow a trader to take advantage of price differences.

Bitcoin immediately reacted to the attacks with its price falling by 12% to $2,424. Looking back on the beginning of June, the price was approaching $3,000.

The second popular cryptocurrency, Ethereum, has surged several thousand percent in that time.

“A speculative frenzy is never a good thing. I don’t think we’re there right yet,” Adam White, Coinbase vice president and general manager of its GDAX exchange, told CNBC in a phone interview. But “I do think the ICO or token generation events have … maybe a bit too much enthusiasm for them.”

When Bitfinex officially announced the IOTA token the other day, the transaction volume skyrocketed so that the servers briefly went down. “Moments after the IOTA launch,” Bitfinex representative Brandon Carps shared, “we were all hands on deck to load balance and ensure IOTA trading was back online and operating as expected.”

Remarkably, 4.44 Million Mega IOTA was traded with the IOT/USD pair only for the first three hours of trading. Even greater activity was observed in the IOT/BTC trades – 11.67 Million Mega IOTA was traded for the same time period.

The post Exchanges Bitfinex and BTC-e Under DDOS Attacks, As a Result Bitcoin Price Falls to $2424 appeared first on CoinSpeaker.

Friedman LLP Audit Will Prove If Bitfinex Is Solvent Or Not

It is due time Bitfinex starts to take action regarding their ongoing issues. A lot of people claim the exchange is insolvent. However, the company states that is not the case. To prove their point, they are now hiring a third party to conduct a financial audit. An intriguing turn of events that should hopefully … Continue reading Friedman LLP Audit Will Prove If Bitfinex Is Solvent Or Not

The post Friedman LLP Audit Will Prove If Bitfinex Is Solvent Or Not appeared first on NEWSBTC.

Friedman LLP Audit Will Prove If Bitfinex Is Solvent Or Not

It is due time Bitfinex starts to take action regarding their ongoing issues. A lot of people claim the exchange is insolvent. However, the company states that is not the case. To prove their point, they are now hiring a third party to conduct a financial audit. An intriguing turn of events that should hopefully … Continue reading Friedman LLP Audit Will Prove If Bitfinex Is Solvent Or Not

The post Friedman LLP Audit Will Prove If Bitfinex Is Solvent Or Not appeared first on NEWSBTC.

Exclusive: Bitfinex Reveals Who Is Behind the Exchange Insolvency Rumors

Bitfinex, one of the world’s largest cryptocurrency exchanges, has once again denied speculations as to its possible bankruptcy, reiterating it is totally solvent.

Last week, Bitfinex has issued an official statement to cover the situation which resulted in fiat deposits and withdrawals being temporarily halted. The issues with correspondent banks the statement referenced to, however, aren’t limited to Bitfinex: a number of other exchanges is facing similar challenges. This is also cited among the reasons why bitcoin is traded at a higher price at the Hong Kong-based exchange with premium reaching $110 at times.

However, those attempts to calm down the community backfired: rumors as to the exchange’s inevitable collapse have been spreading at the speed of light in recent days. Some users go as far as claiming that all funds from Bitfinex’s cold wallets have been withdrawn. However, as one may see below, the wallets are far from empty.

https://bitinfocharts.com/bitcoin/wallet/Bitfinex-coldwallet

Forums and social media are full of other controversial statements concerning the exchange’s present and future. Last week, a post appeared on Reddit claiming “the founder of Bitfinex has a history of supporting Ponzi schemes and the exchange was founded using stolen ‘swiss-cheese’ source code”.

There is also a Twitter account sarcastically named Bitfinextd, which can be seen as a clear reference to the now defunct Mt.Gox. ForkLog has learned that the account belongs to a user known as AtlasRand1 on Reddit. A closer look at AtlasRand1’s comments makes it obvious that Bitfinex and negative rumors about the exchange are the main issues that he or she has had any interest in for the last few months. The user in question also moderates subreddit r/bitfinexinsolvency.

Considering the tightness in the air and lack of up-close information, ForkLog contacted BitFinex with questions about whether the exchange’s administration is aware of those rumors, who they believe might be behind it, and whether the claims of the exchange’s possible bankruptcy have any grounds.

The Bitfinex’s response reads as follows:

“The Twitter account you’re referencing is operated by an individual under different pseudonyms on several social platforms. We’re very familiar with this user and are aware of his position. The owner/operator of @bitfinexed is also AtlasRand1 on Reddit. He also uses another name on Slack, admittedly, but it could be his real name and we don’t wish to potentially expose anyone’s real identity out of respect for their personal privacy.

He has admitted to selling “six figures” worth of Bitcoin on a competitor’s exchange and appears to be financially motivated to campaign against us with a large amount of rhetoric.

Bitfinex is solvent from not only a technical and legal standpoint, but also from a common understanding of being solvent. Asset to liability coverage ratio is > 1 for both iFinex and its subsidiaries. We don’t and never have operated a fractional reserve. Each dollar a user deposits is accounted for and associated with their account, dollar for dollar. Our cold storage Bitcoin wallet has based for the past week as successful domestic Taiwanese wires has expectedly reduced some of the premium pressure relative to other exchanges.

As additional channels are brought online, we expect the premium to dissipate even further.”

ForkLog will continue to gather facts and piece evidence together in order to provide the fullest possible picture of the events. We would like to remind our readers that a cold wallet with fully controlled access is the safest way to store your bitcoins.

Could Mt Gox Repeat Be Real, or Why Bitcoin is Trading at Hefty Premium on Bitfinex

The past week or so has been quite remarkable considering significant price differences at various bitcoin exchanges. It is most noticeable in case of Bitfinex, where Bitcoin is still trading at significant premium. At times, the spread reached $110.

It all started when Bitfinex halted fiat transactions. Shortly afterwards, some community members started expressing their concerns as to the possibility of yet another monumental failure of a major online exchange like the notorious collapse of Mt.Gox.

The Mt.Gox Effect: Is the Concern Justified?

Indeed, Mt.Gox’s collapse was preceded by a withdrawal halting and large price differences across various platforms. It started in August 2013 when Bitcoin was on a bull run ultimately reaching ATH. That’s when the first warnings of Mt.Gox’s unsoundness began popping up. Quite possible, that’s when people started believing such price discrepancies were a ‘bad omen’.

Still, aside from Bitfinex, some other exchanges including BTC-e and OKCoin also have problems with fiat deposits and withdraws. Their troubles are considered among the factors that helped bitcoin price grow in April. At the same time, cryptocurrency is way cheaper at OKCoin than elsewhere.

With all that being said, the main difference between 2013 and today’s events is the MtGox’s use of the notorious trading bot Willy. It was first noticed in September 2013 and remained active until January 2014. A month before, bitcoin price has first reached its historic maximum, and the credit for MtGox’s higher price often goes to Willy.

For comparison, below are the prices offered by some exchanges in December 2013:

$1,242 – Mt Gox
$1,175 – Bitfinex
$1,163 – Bitstamp

Aside from Willy, Mt Gox was also a home for another bot named Markus. Anyway, it was Willy who was actively driving up the bitcoin premium on Mt Gox on a regular basis. According to “The Willy Report”, the account remained operational until January 2014 buying around 100 BTC each hour with intervals of 5 to 10 minutes.

Back to today’s Bitfinex, there is actually no substantial evidence to justify any comparison with Mt Gox. The exchange furiously denies assumptions of possible non-solvency, and has even issued a statement in this regard.

The Tether Factor

Speaking of price discrepancies, Poloniex should not go unmentioned either, with Bitcoin price levels comparable to that at Bitfinex. However, one should remember that Poloniex doesn’t use real fiat currencies, and USDT is none other than Tether, a digital asset whose price remains stable against USD at 1:1. Or, to be precise, it remained so until recently: Tether price went down when Bitfinex and other exchanges faced fiat problems: currently it stands at around $0.90.

At the first glance, it looks like a great opportunity for arbitration, however, users have already started doubting Tether Limited’s business model, as well as the company’s ability to keep their asset’s price pegged to USD.

“The problem here is that this is creating a very large price spread between exchanges that quote ACTUAL dollars and those that quote tether. This distinction is not being made clear, which I think is having an unhealthy influence on price rallies in cryptocurrencies. Furthermore, I have doubts that this tether is backed by dollars at all and in all likelihood is a fractional reserve,” Reddit user CryptoTraderPro wrote.

Other users also express their concerns about the project referencing some of Tether’s Terms of Service, something ForkLog noted as early as March this year:

The terms actually read:

“Tethers are not money and are not monetary instruments. They are also not stored value or currency. There is no contractual right or other right or legal claim against us to redeem or exchange your Tethers for money. We do not guarantee any right of redemption or exchange of Tethers by us for money. There is no guarantee against losses when you buy, trade, sell, or redeem Tethers.”

What Is Happening to Tether

The halt of fiat operations at BitFinex was caused by limitations imposed by Wells Fargo. At some point the exchange even sued Wells Fargo, however, later it withdrew the lawsuit. A similar lawsuit was filed by Tether Limited.

The company has described the course of events in its recent statement:

“Since April 18, 2017, all incoming international wires to Tether have been blocked and refused by our Taiwanese banks. As such, we do not expect the supply of tethers to increase substantially until these constraints have been lifted.”

The statement goes on to say that the corporation is seeking alternate banking corridors that could enable depositing and withdrawals once again. New USDT tokens are not being issued, and Tether continues to maintain a 1:1 backing of real-life fiat.

The question remains though why is the 1:1 peg not working? The most obvious explanation is the lack of liquidity due to banking limitations, as well as some panic fueled by recent news and rumors.

Users being in a hurry to get their USD deposits could be willing to sell their USDT at a loss instead of waiting for an unspecified period of time until the bank issues are settled. Another factor is the crypto community itself that has obviously learned the Mt.Gox lesson, and seems to be always ready to offload their assets before they turn into useless numbers.

Still, it’s not quite clear whether the problems Tether is experiencing at the moment are related solely to banks, or there are some other aspects not revealed to the general public. Still, if fiat withdrawals are restored, the USDT exchange rate is likely to get back to its normal 1:1 ratio.

For now, this hasn’t happened, and the first cryptocurrency’s price keeps on climbing up. On Wednesday, April 26th, Bitcoin exchange rate at Bitfinex has reached the $1,411 ATH, while at Bitstamp it stood $1,330. The price discrepancy thus remains great, and the situation remains far from healthy.

Andrew Asmakov

Bitcoin Trading at a Premium on Bitfinex and Poloniex

While Bitcoin tends to have slight price premiums and discounts in different currency markets like the CNY or INR, some exchanges are now trading Bitcoin with a considerable premium. Bitcoinist explains why.


Bitfinex and Poloniex Price Premium

A quick look at the Bitcoin prices from all exchanges in the field and one will notice a small anomaly. Both Bitfinex and Poloniex are trading Bitcoin with a +$50 premium on the USDT market. While most exchanges currently have an exchange rate of 1 BTC/ 1,200 USD, both Poloniex and Bitfinex are trading at roughly 1 BTC/ 1,260 USD.

This premium is due to the difficulty experienced in withdrawing fiat currency from these exchanges, in this case, the U.S.Dollar. While Bitfinex seems to be experiencing problems on the fiat side due to recent complications with partner banks, there also seem to be some problems with liquidating the USDT cryptocurrency token that replaces the USD currency on the Poloniex exchange.

It turns out, however, that both exchanges are being affected by the same problem: Wells Fargo.

Bitfinex trading BTC at a premium

Bitfinex

Last week, Bitfinex published a blog post regarding delays in processing USD withdrawals. Although Bitfinex doesn’t state what the exact problem is, the situation is believed to be connected with the problems experienced with the Wells Fargo bank which stopped processing transfers from the Taiwanese banks used by Bitfinex. Since then, Bitfinex has decided to file a lawsuit against the bank and is seeking a preliminary injunction as well as damages of more than $75,000. The announcement reads:

Bitfinex is currently experiencing delays in the processing of outbound USD wires to customers. The normal channels that we have been operating through in the past are currently unavailable. Alternative channels are being opened to solve these transmission delays; however, the complexity and scale involved mean that it is taking some time to return to normal withdrawal velocities. Consequently, customers requesting USD wires should expect delays as we work to normalize the withdrawal process. USD deposits remain unaffected.

However, since then, the situation has escalated and despite the reference made by Bitfinex to the USD deposits remaining unaffected, a new announcement was posted yesterday, stating that USD deposits are being blocked. The new statement enforces the notion that the problems are indeed due to the complications with Well Fargo and Bitfinex’s Taiwanese banks. The announcement reads:

Beginning April 18, 2017, all incoming wires to Bitfinex will be blocked and refused by our Taiwan banks. This applies to all fiat currencies at the present time. Accordingly, we ask customers to avoid sending incoming wires to us until further notice, effective immediately.

As users struggle to withdraw USD, those that are not willing to wait for the operations to return to normal may be pushing the price upward as they buy Bitcoin in an attempt to move funds out of the exchange and liquidate them elsewhere at a loss. Other may be taking advantage of the situation and selling for a higher price, hoping that withdrawals will eventually resume, pushing the price back to the average exchange rate.

Poloniex - Tether - USDT

Poloniex

The problems on Poloniex’s side seem to derive from the USDT (Tether) cryptocurrency token. Poloniex does not allow fiat withdrawals or deposits and works instead with USDT,  a crypto asset issued on the Bitcoin blockchain through the Omni Layer.

This may cause some liquidity problems for users that are not aware how to exchange USDT for USD. The main USDT/USD market is, in fact, Bitfinex, which is currently experiencing the aforementioned issues with deposits and withdrawals. Other markets like Kraken seem to be trading USDT/USD at a discount, currently going for $0.941, meaning that users that sell Bitcoin for USDT and then withdraw it through Kraken are doing so at a loss. Other USDT/BTC markets like Bittrex are also seeing a premium for BTC.

Users could still exchange the cryptocurrency for USD on the official Tether website but there’s a problem: Tether was also working with Wells Fargo to process customer in and outgoing transaction but the bank decided to freeze operations, affecting both Tether and Bitfinex.

So, we can see that both Poloniex and Bitfinex are being affected by the same problem which is being caused by Wells Fargo. It is unclear when the situation will be resolved but it’s worth noting that Tether has no legal obligation to resume withdrawals, although they most likely will. The website’s legal warning reads:

There is no contractual right or other right or legal claim against us to redeem or exchange your Tethers for money. We do not guarantee any right of redemption or exchange of Tethers by us for money. There is no guarantee against losses when you buy, trade, sell, or redeem Tethers.

Have you been affected by the withdrawal issues on Bitfinex or Poloniex? Let us know in the comments below.


Images courtesy of Bitfinex, Poloniex, AdobeStock

The post Bitcoin Trading at a Premium on Bitfinex and Poloniex appeared first on Bitcoinist.com.

Bitcoin Trading at a Premium on Bitfinex and Poloniex

While Bitcoin tends to have slight price premiums and discounts in different currency markets like the CNY or INR, some exchanges are now trading Bitcoin with a considerable premium. Bitcoinist explains why.


Bitfinex and Poloniex Price Premium

A quick look at the Bitcoin prices from all exchanges in the field and one will notice a small anomaly. Both Bitfinex and Poloniex are trading Bitcoin with a +$50 premium on the USDT market. While most exchanges currently have an exchange rate of 1 BTC/ 1,200 USD, both Poloniex and Bitfinex are trading at roughly 1 BTC/ 1,260 USD.

This premium is due to the difficulty experienced in withdrawing fiat currency from these exchanges, in this case, the U.S.Dollar. While Bitfinex seems to be experiencing problems on the fiat side due to recent complications with partner banks, there also seem to be some problems with liquidating the USDT cryptocurrency token that replaces the USD currency on the Poloniex exchange.

It turns out, however, that both exchanges are being affected by the same problem: Wells Fargo.

Bitfinex trading BTC at a premium

Bitfinex

Last week, Bitfinex published a blog post regarding delays in processing USD withdrawals. Although Bitfinex doesn’t state what the exact problem is, the situation is believed to be connected with the problems experienced with the Wells Fargo bank which stopped processing transfers from the Taiwanese banks used by Bitfinex. Since then, Bitfinex has decided to file a lawsuit against the bank and is seeking a preliminary injunction as well as damages of more than $75,000. The announcement reads:

Bitfinex is currently experiencing delays in the processing of outbound USD wires to customers. The normal channels that we have been operating through in the past are currently unavailable. Alternative channels are being opened to solve these transmission delays; however, the complexity and scale involved mean that it is taking some time to return to normal withdrawal velocities. Consequently, customers requesting USD wires should expect delays as we work to normalize the withdrawal process. USD deposits remain unaffected.

However, since then, the situation has escalated and despite the reference made by Bitfinex to the USD deposits remaining unaffected, a new announcement was posted yesterday, stating that USD deposits are being blocked. The new statement enforces the notion that the problems are indeed due to the complications with Well Fargo and Bitfinex’s Taiwanese banks. The announcement reads:

Beginning April 18, 2017, all incoming wires to Bitfinex will be blocked and refused by our Taiwan banks. This applies to all fiat currencies at the present time. Accordingly, we ask customers to avoid sending incoming wires to us until further notice, effective immediately.

As users struggle to withdraw USD, those that are not willing to wait for the operations to return to normal may be pushing the price upward as they buy Bitcoin in an attempt to move funds out of the exchange and liquidate them elsewhere at a loss. Other may be taking advantage of the situation and selling for a higher price, hoping that withdrawals will eventually resume, pushing the price back to the average exchange rate.

Poloniex - Tether - USDT

Poloniex

The problems on Poloniex’s side seem to derive from the USDT (Tether) cryptocurrency token. Poloniex does not allow fiat withdrawals or deposits and works instead with USDT,  a crypto asset issued on the Bitcoin blockchain through the Omni Layer.

This may cause some liquidity problems for users that are not aware how to exchange USDT for USD. The main USDT/USD market is, in fact, Bitfinex, which is currently experiencing the aforementioned issues with deposits and withdrawals. Other markets like Kraken seem to be trading USDT/USD at a discount, currently going for $0.941, meaning that users that sell Bitcoin for USDT and then withdraw it through Kraken are doing so at a loss. Other USDT/BTC markets like Bittrex are also seeing a premium for BTC.

Users could still exchange the cryptocurrency for USD on the official Tether website but there’s a problem: Tether was also working with Wells Fargo to process customer in and outgoing transaction but the bank decided to freeze operations, affecting both Tether and Bitfinex.

So, we can see that both Poloniex and Bitfinex are being affected by the same problem which is being caused by Wells Fargo. It is unclear when the situation will be resolved but it’s worth noting that Tether has no legal obligation to resume withdrawals, although they most likely will. The website’s legal warning reads:

There is no contractual right or other right or legal claim against us to redeem or exchange your Tethers for money. We do not guarantee any right of redemption or exchange of Tethers by us for money. There is no guarantee against losses when you buy, trade, sell, or redeem Tethers.

Have you been affected by the withdrawal issues on Bitfinex or Poloniex? Let us know in the comments below.


Images courtesy of Bitfinex, Poloniex, AdobeStock

The post Bitcoin Trading at a Premium on Bitfinex and Poloniex appeared first on Bitcoinist.com.

The BitFinex Scare

Over the past few weeks BitFinex has strung along a series of unfortunate events:

  • March 29th: Announcement of delay of withdrawals (on April 3rd and 4th) due to closure of Taiwanese Banks during the ‘Qing Ming Jie Feastival’
  • April 3rd: Bitfinex announces that it would be redeeming 100% of all its issued and outstanding BFX tokens (issued due to the hack in 2016)
  • April 13th: Announcement discussing current withdrawal delays with the USD fiat pair
  • April 17th: Deceleration that all fiat deposits will be halted until further notice

These events have sparked paranoia in the public. The most alarming indicator being the spread of prices between Bitfinex and Bitstamp. As individuals are still able to withdraw from Finex via crypto currencies, the price at finex has inflated to become above 4% higher.

Along with many weary traders I felt rather frightened. Finex has clearly been attempting to alley fears through their announcements for pairing with “new currencies”. u/Bfx_brandon has been hard at work on various subreddits mentioning that fiat withdrawals through HKD/ Swiss franks are still possible, but with Finex’s Mt.Gox similarities still fresh in many trader’s minds there still exists a climate of paranoia.

It is worth noting that Poloniex prices are also inflated as they too seem to be facing issues with Wells Fargo.

Ultimately my impression of the whole scenario is that there is still quite an extent of paranoia involved. Bitfinex’s responses have been somewhat genuine thus far (promising an announcement regarding an audit late this month). I believe that full panic has not completely set in, and if it does get to that stage the price gap is bound to jump further. But alas only time will tell.