Bitcoin, like many other financial assets, often has volatile moves. Trading occurs on dozens of different exchanges and prices mostly stay in line. But unlike US equities there is no explicit linkage between the exchanges. Therefore, prices between exchanges can deviate. This most often happens during price volatility as exchange order books thin out and trading volumes increase.
Around 9:30pm CST, on Thursday May 14th, bitcoin had some pretty typical price action. The price dropped $100 (9750 to 9650) over about 30 minutes. Then during a 3 minute period (9:31-9:33pm), the price dropped $400 before recovering $300.
Here we look at the price of BTC-USD during the one and a half minute period from 21:31:30 to 21:33:00 based on trades across five large exchanges. Note that we filtered for trades of >$1000 so as to only consider significant volume trades.
When we look at this, we can see several periods where one of the exchanges had trading occurring at prices quite below where other exchanges were trading. Four of these periods are noted below.
From this analysis, a few conclusions can be made:
Who knows where the the price of Bitcoin will go in the future, there are pros and cons of investing, but one thing we know for sure which is that selling for $100 less than available elsewhere is a guaranteed loser! All of the analysis above was done using CoveTrader historical analysis tools.
CoveTrader by Cove Markets is a platform for active traders of bitcoin and other cryptocurrencies. The crypto market is highly fragmented with dozens of exchanges and limited availability of trading tools. CoveTrader ties the market together in one powerful and transparent trading and analytics platform.