RATE Group | What’s Causing 2% Bitcoin Premium on Bitfinex? Possibility of Arbitrage
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What’s Causing 2% Bitcoin Premium on Bitfinex? Possibility of Arbitrage

14 Oct What’s Causing 2% Bitcoin Premium on Bitfinex? Possibility of Arbitrage

Posted at 03:01h in Bitcoin News by

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bitcoin price

On Bitfinex, a leading cryptocurrency exchange, Bitcoin is being traded with a 2 percent premium based on the current price of $6,285.

As BitMEX Research revealed, the premium of Bitcoin on Bitfinex continued to increase throughout the past week, during a period in which Tether (USDT) started to demonstrate a decline in price.

Currently, on Bitfinex, all traders are requested to purchase or sell major cryptocurrencies like Bitcoin and Ethereum with USDT, due to the suspension of deposits into the exchange’s HSBC banking account.

As the price of USDT fell from $1 to $0.098, by around 2 percent, the premium of Bitcoin on Bitfinex increased by a similar margin.

Why Tether is Going Down

Speaking to CCN, Alex Kruger, a prominent cryptocurrency trader and analyst, stated that the decline in the price of USDT, which is supposed to be pegged to the value of the US dollar on a 1:1 ratio, is attributable to three factors:

  1. Traders moving to audited and regulated alternatives like…

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