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Turbulence at Mt. Gox Creates Arbitrage Opportunities For Bitcoin Traders

Sunday 30th, June 2013 / 08:31

Towards the end of last week something seemingly unexpected happened in the bitcoin market – the price of BTC rose on unquestionably bad news. After Mt. Gox announced a temporary halt on USD withdrawals, the price of BTC on Gox climbed approximately 5% in a matter of hours. While this may seem like an odd reaction at first, further investigation shows that this is actually a highly consistent and predictable occurrence. The rate change on Mt. Gox, the long-time leader in bitcoin exchange volume, was actually an anomaly. In comparing the price of BTC on Gox with the price other top BTC/USD exchanges, you’ll see a remarkable divergence in prices after the announcement. The price on Gox rose quickly to $113 as prices on the on other exchanges remained relatively stable around $105. Intuitively, one might think bad news that directly affects one exchange would have a negative impact on that exchange’s core market – so why then did the price of BTC jump so significantly only on Gox? The…

The post Turbulence at Mt. Gox Creates Arbitrage Opportunities For Bitcoin Traders appeared first on The Genesis Block.

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