Bitcoin: Breaking - this is why Bitcoin prices on Coinmarketcap seem to plunge
At the moment, cryptocurrency prices on Coinmarketcap.com seem to be taking a dip, ranging from -8.4% for Bitcoin to even 20.6% for Ripple in the top 10.
One of the reasons for the current plunge of various cryptocurrencies is that Coinmarketcap.com is currently not factoring in the prices of South Korean exchanges (e.g. Bithumb, Korbit). These exchanges have been paying a big premium for certain coins. By not factoring in their prices, it is clear that they will be substantially lower.
You can verify this by looking up the markets of each coin. They have actually written it next to the prices as a footnote.
Here is bitcoin for an example:
The problem is that people might take this for real which in turn might become a self-fulfilling prophecy leading to a real dip.
Yes, the arbitrage in other markets comparing to Korean markets is huge! The main reason: very strict restrictions in Korean exchanges. It takes ages to withdraw cryptos from Korean eWallets or Exchanges. On the other hand when cryptos are such a popular phenomenon in Korea, worth to look from time to time in their pricing, because the chances are that the prices in other markets will follow: whether it's a dip, or a massive rise.
I noticed that about a month ago, couple weeks before Christmas, that Bitcoin's price is directly correlates to Korean's pricing. Ofc used it to my advantage too.
You are right. One further reason for this might also be that Korean exchanges enabled accounts that were somewhat anonymous which might have been attractive for some buyers / sellers.
At what point will the Korean exchanges start playing fair? This is typical Asia, I just spent many years living there. If you order a black car in many countries you pay a 15-20% premium for the perception of wealth. My wife is Indonesian and we see this Korean type behavior across the region.
Nice