Bitcoin prices diverge wildly as demand overwhelms exchanges

Bitcoin prices diverged dramatically across global exchanges on Friday, as hyperdeflation and frenzied demand drove the price to over $25,970 a coin on some exchanges before a sharp correction took hold.

Volumes on the world's five largest exchanges saw $US10 billion worth of trade change hands in a period of 24 hours, though prices differed by as much as $US2,000 as the exchanges struggled to manage the onslaught of demand.

Before the correction bitcoin was fetching $US15,992 on Bitfinex, a Taiwan-based exchange, whereas it was fetching as much as $US18,300 on US-based GDAX.

More than 3,000 new customers signed up to Australian-based Independent Reserve's platform on Friday alone, helping to drive the price in Sydney up to $25,970 – significantly higher than in many other exchanges – before the correction started.