Thanks guys, I thought it was about arbitrage...
So, you're saying that the price equalization is actually caused by players using bots to take advantage of price differences between exchanges. Makes sense. I thought (just guessing here) that maybe the exchanges themselves had some sort of mechanism in place to prevent this. Also, the time it takes to transfer funds between exchanges would work against it.
Too complicated. Just HoDL and wait. Works for me.
I doubt that arbitrage is the full explanation because like you said, if there is large movement, then many exchanges do that at the same time, and arbitrage would prevent that from happening, somewhat.
But, I think that the concept of arbitrage and bots does play into the idea that there is a lot of realtime monitoring of exchanges by both bots and by real people, so when the price moves a lot on one exchange, people do not want to get screwed on another exchange because they did not keep up and they were overpaying because they did not keep up with what is going on on other exchanges.
Now sometimes some exchanges will get left behind or they will try to move the BTC price in one direction or another, but sometimes the other exchanges do not follow because they have likely learned (somewhat) from such trickery that happens by some exchanges that are either less liquid or less credible... but sometimes the activities on major exchanges will end up following the smaller exchange because the players might end up learning that the activities on the smaller exchange was contemplating a piece of information or news that the BIGGER players had not recognized or understood.
Of course, there can be a lot of advantages for those players who really are able to take advantage of how the compile and interpret information, and of course, with the passage of time, we expect some of the chicanery to lessen because more markets result in more liquidity and of course larger market cap becomes harder to move, too, but of course, bitcoin is still a small as fuck market (even while it is the BIGGEST of the cryptos), so hard to see major lessenings of the Bitcoin price manipulations and craziness for a couple more halvenings, at least, even if the tools (whether information or actual coin movement) and the quantity of capital is likely to continue to move in the upwards direction.
For sure, I am just speculating too, and I don't really have any ability to really understand details, either, and of course, many of the BIGGER players are going to understand these various dynamics a lot better, and sure even some of them are going to get screwed from time to time when they miscalculate what they think that their manipulating little asses can accomplish and then they get flanked by either some other BIG player or perhaps the masses at large do not end up buying into their manipulation attempts.