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.
What is going on? Price at Bitfinex and Poloniex is still at a $50 .
over other USD exchanges. pic.twitter.com/0dFkkfXW8A
— SGKinsmann (@BambouClub) April 18, 2017
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.
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