Bitfinex Bitcoin price rises abnormally, experts are bearish on future Bitcoin market

Golden Finance News - It has been a week since Bitfinex announced that it had problems with its banking partners, and the bitcoin exchange is still currently suspending US dollar deposit and withdrawal services to its customers.

Since the problems became public, the price of bitcoin on Bitfinex has been rising, reaching a new high among global bitcoin exchanges. As the price of the coin has risen, Bitfinex's quotes have become $100 higher than other exchanges, causing traders to worry that a bubble is forming.

Everyone loves a bull run when it comes to investment markets, but this particular Bitfinex bitcoin price surge is seen as unusual.

As one of the largest Bitcoin exchanges, Bitfinex has stopped its users’ USD withdrawal service until further notice. However, this news did not cause adverse reactions in the market. Instead, the Bitcoin price on Bitfinex began to rise and gradually became higher than other exchanges.

As of press time, the price of each Bitcoin on BitBinex is $1,440.30, but the price on Bitstamp is only $1,306. Since similar situations in the past pointed to a major crash in the Bitcoin market price, the current situation has once again raised traders' concerns about market uncertainty. (Referring to the Mt Gox "Mentougou" incident.)

The uncertainty brought by Bitfinex's price fluctuations has attracted much attention. Bitcoin.com interviewed Petar Zivkovski, COO of Whaleclub, about the current rise in Bitcoin prices.

Regarding the current market Bitcoin price trend, Zivkovski said that he has discussed this issue with many industry experts and insiders in the past few weeks, and the tone is generally bearish.

“I personally think we are entering greed territory when it comes to Bitcoin price. We have seen less than 2% shorting of positions on Whaleclub in the last 24 hours. This means that there is almost no one in the market who is against Bitcoin price going higher.”

“The reason is simple, Bitfinex is currently leading the pack. However, Bitfinex has removed USD withdrawals, leaving many of its customers with only one option left, to use their funds to buy Bitcoin in USD from the platform and then withdraw from Bitfinex’s trading market. This process artificially props up the price, which results in the $100 spread we see.”

The Whaleclub executive said figures show that 50% of Bitfinex’s cold wallets have been drained in the past few weeks due to customer withdrawals.

Zivkovski said that even with the current surge in Bitcoin prices, insiders are still bearish on future prices. Zivkovski explained:

“Once the withdrawal issues are resolved, or a bearish event such as exchange liquidations occurs, the price of Bitcoin could drop significantly.”