Substantial BTC spread between Gemini (running a premium) and other exchanges. Anyone know what’s up?
Discussion
I noticed this as well and posted about it earlier. Not sure why but I wish I had a good way to take advantage of it.
wasn’t there some coin the USG moved to coinbase recently?
I am not sure, been asking about this today.. There's a $210 difference between btc/usdt on binance and Kraken and coin base.. ha btc/usdc was trading at 22k today..
My guess would be users getting nervous about their GUSD and trading it for Bitcoin. Gemini depegged earlier this morning.
👀 it's gonna be an interesting weekend..
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Run on Geminis btc reserves?
I’d think swapping from “stable” coins is driving up the most secure pair on earth
The worrying option is that they have problems with the fiat side of their business (stablecoin included) so the only option to get your funds out of the exchange ecosystem is buying bitcoin.
How would one be first to withdraw in a bankrun on stables? Withdraw to usd cash or convert to btc ? Either puts the user at the mercy of the exchange to send to a bank acct or cold wallet but I know what I’d do. Have no idea if this has anything to do with flight to safety.
Not enough bitcoins?
people buying bitcoin and withdrawing instead of waiting for monday. gemini's stablecoin (GUSD) also trading at $0.97 on coinbase.
might be volatility of each stablecoin.
Wow, just checked price Gemini: 21,201. Coinmarketcap: 20,283
That’s no small dislocation
The banking rails are clogged at the moment. Creates pricing and mark to market issues for all types of assets based on players selling what they can, not what they want to.
The same Luna / DCG induced crunch has now bled over to TradFi.
Now we have multiple base money assets with piping clogs and systemic failures across both rails and different types of investors > Public, private, sound, unsound.
Not to mention the differing mix of liquidity profiles and the challenges that creates.
Same story… over, and over, and over again…
Wrong link. Here’s the right one: https://open.substack.com/pub/kanemcgukin/p/time-money-and-people-change-liquidity?utm_source=direct&r=99ex&utm_campaign=post&utm_medium=web
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They briefly delisted BTCGUSD.
Thats weird. Tether trading at 1.06 too
Problems with their stable?
GUSD is down 2%
This is due to GUSD selling at a discount. Flight to safety
Dang
wow and USDC went as low as .87 in the last 24 hrs.
It's breaking down and the trad-fi markets are closed all weekend so they can't buy treasuries right now to back it up. Their only other recourse right now is to start burning coins like crazy to take them out of circulation.
Can this be arbitraged?
Looks to be a flight to Bitcoin from GUSD and USDC stables. No idea why this is Gemini specific other than this is a less liquid exchange
Bitcoin gets to show contagion while the rest of the system is closed.
it’s like buying Bitcoin in Nigeria at the moment… 👀
Today's fun! 😅
Didn’t that happen with Mt. Gox back in 2013?
Yes. BTC on Mt. Gox was significantly higher than other exchanges for quite a long time (months?) just before they went under. The cause was supposedly issues with fiat banking withdrawals causing people to have to buy BTC to get off the exchange.
This might be related to Silvergate or Silicon valley bank failures, possibly indirectly through USDC or other stable coins that have been caught up in it. I would expect the price to be higher if Gemini was having banking issues, though. Maybe this indicates that the issue is actually at other exchanges ( Coinbase ) and Gemini is actually fine or maybe the stable coin issues make it behave differently some how? Either way, things are going to get interesting.
Your post is getting a lot of likes.
Added to the https://member.cash/hot feed
On high level we all know what's up.
For the specifics the system is so intertangled without any connection to reality that it's not possible to find the root cause - you will just run in circles for years going "aha, it's X", "aha, it's Y", "aha, it's Z"...
But thanks to bitcoin it doesn't matter long term... 💜⚡
Somewhere the next SBF is born
Probably trying to make up that 900 billion Barry still has 🤷🏾♂️