This chart shows the % of discrepancy between Bitfinex's BTC/USD and Coinbase's BTC/USD prices in live time.
Bitfinex, Binance, OKEx, Huobi, HitBTC, Poloniex, Bittrex etc. are cryptocurrency exchanges which are operating on a digital token called Tether (USDT is its ticker). These are called tether-to-crypto exchanges. USDT is (allegedly) pegged to the US dollar on a 1:1 basis, i.e. it is a stablecoin. 1 USDT is (allegedly) redeemable for 1 US dollar.
In contrast to the aforementioned cryptocurrency exchanges, there are other platforms that are operating on fiat currencies ($, €, GBP, JPY etc.). These are called fiat-to-crypto exchanges. Coinbase (formerly know as GDAX), Bitstamp, Kraken, Gemini are some examples. Bittrex (TUSD) and Poloniex (USD Coin) have introduced their stablecoins recently.
I incorporated Bitfinex's and Coinbase's prices in my study due to their greater daily volume. The same results will be obtained if you use any other combination of tether-to-crypto and fiat-to-crypto exchanges.
A value greater than 0% means that Bitfinex's BTC/USD is currently running at a premium over Coinbase (or any other fiat-to-crypto exchange in question).
A value smaller than 0% means that Bitfinex's BTC/USD is currently running at a discount compared to Coinbase (or any other fiat-to-crypto exchange in question).
Recent concerns raised by the fact that USDT remains unaudited have led to BTC running on a premium on tether-to-crypto exchanges in comparison to the fiat-to-crypto exchanges (value >0 in the above chart).
You can incorporate this tool in your Risk Management arsenal. Periods of extreme uncertainty will be accompanied by BTC/USD 'risk premium' on Bitfinex (or any other tether-to-crypto exchange).
Use case example: If you are risk-adverse, you may consider getting yourself out of your tether holdings on such occasions.
This tool is to be used at one's own risk. Cheers!
Bitfinex, Binance, OKEx, Huobi, HitBTC, Poloniex, Bittrex etc. are cryptocurrency exchanges which are operating on a digital token called Tether (USDT is its ticker). These are called tether-to-crypto exchanges. USDT is (allegedly) pegged to the US dollar on a 1:1 basis, i.e. it is a stablecoin. 1 USDT is (allegedly) redeemable for 1 US dollar.
In contrast to the aforementioned cryptocurrency exchanges, there are other platforms that are operating on fiat currencies ($, €, GBP, JPY etc.). These are called fiat-to-crypto exchanges. Coinbase (formerly know as GDAX), Bitstamp, Kraken, Gemini are some examples. Bittrex (TUSD) and Poloniex (USD Coin) have introduced their stablecoins recently.
I incorporated Bitfinex's and Coinbase's prices in my study due to their greater daily volume. The same results will be obtained if you use any other combination of tether-to-crypto and fiat-to-crypto exchanges.
A value greater than 0% means that Bitfinex's BTC/USD is currently running at a premium over Coinbase (or any other fiat-to-crypto exchange in question).
A value smaller than 0% means that Bitfinex's BTC/USD is currently running at a discount compared to Coinbase (or any other fiat-to-crypto exchange in question).
Recent concerns raised by the fact that USDT remains unaudited have led to BTC running on a premium on tether-to-crypto exchanges in comparison to the fiat-to-crypto exchanges (value >0 in the above chart).
You can incorporate this tool in your Risk Management arsenal. Periods of extreme uncertainty will be accompanied by BTC/USD 'risk premium' on Bitfinex (or any other tether-to-crypto exchange).
Use case example: If you are risk-adverse, you may consider getting yourself out of your tether holdings on such occasions.
This tool is to be used at one's own risk. Cheers!