Bitcoin's Price is Nearing All-Time Highs, But Market Confidence Isn't

Publicado en by Coindesk | Publicado en

Chief among concerns are the ongoing issues at British Virgin Islands-based digital currency exchange Bitfinex, as the market's dominant US dollar exchange saw banking problems appear seemingly out of nowhere earlier this month.

The issue, the exchange said, was that Wells Fargo, acting as a correspondent bank for those Taiwanese institutions, had refused to handle those transactions.

Further, with bitcoin and litecoin withdrawals still barred at major exchanges in China following a crackdown by the country's central bank, it's difficult to determine just how much of the market is functional at the moment.

Nejc Kodric, CEO of digital currency exchange Bitstamp, called the situation "Similar to Mt Gox", a reference to the now-defunct Japanese bitcoin exchange that collapsed in 2014, resulting in millions of dollars in customer losses.

Already, the exchange is said to be looking for other banking options.

Other market observers have discussed fears that a domino effect could play out should Bitfinex's banking issues prove prolonged, or worse, fatal to the health of the exchange.

The more extreme doomsday theory goes something like this: Should USDT fail because of issues at Bitfinex, this could in turn impact Poloniex, thereby increasing the total market damage given that Poloniex is a leading exchange for both new and existing cryptocurrency listings.

What's more, overall exchange volume appears to have declined since the year began, according to available market data.

"Chinese exchanges can't withdraw bitcoin, the biggest exchange Bitfinex can't withdraw US dollars."

Still, he said any change in the market brings opportunities for savvy investors, and that well-connected network users are still easily able to "Cash out" through the range of available global exchanges.

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