Were in for another sell off
With which coins?
www.blockchained.comFor the first time, ask volume decreased during the crash, proving that the sells were pure panic. By this time after the november, 900-450 crashcorrection, ask volume had doubled and reached eventually triple the magnitude. In april it also skyrocketed to 4-5 times the initial value. Now it shows absolutely no will to even get back to pre-crash levels.
Honestly, I'm at a loss for how ask depth is a useful indicator here. We have
no idea how many coins are waiting in the wings, off the books. And we don't know the extent of arbitrage being done by Chinese traders.
^This. I still can't believe there's such a huge gap between Gox & BTC China. May not be so easy to arbitrage. But was there always a 100 difference between prices?
BTCchina used to be higher than gox as I remember it. by quite a bit. now it's 100 lower.
Arbitrage has never been possible between the western and the Chinese exchange, the only one bragging about how he was doing arbitrage was rpietila, demonstrating how he's just full of shit.
Are we sure about that?
Yes. If arbitrage was possible we wouldn't have such spreads, the market would immediately take care of them. Arbitrage is risk free profit, if it's possible to have it you exploit it.
And btw, I respectfully proved how rpietila was not making "arbitrage" between China and Stamp, but he deleted all my posts.
The problem is that you cannot efficiently move fiat between exchanges.
The spread between china and stamp/Gox has been consistently big. Exchanging RMB for USD cheaply and efficiently its complicate for "foreign traders". In fact, on rpietilas post I politely asked him to explain how he managed to move fiat between western and China exchange. He answered that he didn't, his way of doing "arbitrage" was buying low on stamp, selling high on BTCChina, and then patiently waiting for the spread to go to 0 or near 0, to then buy the coins on China again and sell them on stamp.
I guess that anybody with half a brain understands that has nothing to do with arbitrage. Arbitrage needs to be quasi immediate and risk free by definition. The above process is not risk free at all: you need to bet on the spread going at 0 or near 0 (and you need to waste resources monitoring that), and what happens if in the meantime the price doubles? That you lost half of your coins, that's not arbitrage.
Don't believe what Reuters writes - they are clueless. Probably the "journalist" documented himself by reading Risto's delusional ramblings, or checking the BTC-E troll box. There is one hard cold fact that proves that arbitrages between exchanges is not possible: the spread is consistently high among ALL of them. When arbitrage is possible, the spread is zero - full stop.
) couple that with the China fiasco and we have a nice big crash. Just thankful it was not worse really.
