Bitcoin Price Analysis 08/12/2017

Over the last 24 hours, volume has been led by US Dollar (USD) and Japanese Yen (JPY) trading pairs on Bitfinex and BitFlyer respectively. Prices have varied wildly from currency to currency today. GDAX traders were paying a premium in USD of almost $3,000.

As it stands, due to strict and limiting banking laws, most of the exchanges are now siloed from one another with almost no ability for anyone to easily arbitrage the spread. The friction within the Bitcoin network itself, due to the aforementioned transaction backlog, adds to arbitrage risk. By the time the coins have moved to another exchange the price may have varied wildly.

Conclusion :

Both the on-ramps/exchanges and the network itself has been unable to keep pace with demand. While this is a good problem to have, it makes price discovery difficult and elongated in duration. The fair value for Bitcoin can only occur when the available demand pool is able to meet the available supply pool, which is not currently the case.

ORIGINALLY POSTED AT SOURCE : https://bravenewcoin.com/news/bitcoin-price-analysis-price-increasing-at-a-breakneck-speed/