How exchanges affect bitcoin prices

1. Because bitcoin is a decentralized currency, unlike traditional currencies, which have central regulators, its price is completely determined by the market. Bitcoin is an investment proct in many countries. It's more similar to stocks. It's normal to go up and down. On the currency, its price fluctuates constantly. Now it's only worth $6500.

2. Reasons for bitcoin's surge:
factor 1: bitcoin's spot trading volume rose
the decline on March 13 caused BTC to drop from US $8000 to US $3600 within 24 hours, and the buying volume of coinbase, Kraken, binance, bitfinex and other spot exchanges surged
at the same time, open positions (used to describe the total number of long and short positions opened at a specific time) fell sharply in mainstream futures exchanges (including bitmex, binance futures and okex)
the sharp decline of open position and the obvious increase of spot purchase volume of futures exchange actually lead to the transformation of the market. The spot market began to control the price of bitcoin, rather than the futures market
the futures market usually causes sharp fluctuations in the price of bitcoin, because traders use leverage (borrowed funds) to trade cryptocurrency, while in the spot market, investors buy and sell bitcoin without borrowing funds
this change has stabilized the market, enabled the price of bitcoin to rebound without a significant correction, and the volatility is relatively low

factor 2: BTC should not have fallen below $4000 at the beginning
on March 31, coinbase published a blog post, describing in detail the market trend after bitcoin plummeted to $3600
the exchange said that most users of the platform bought bitcoin after a sudden decline, adding that the waterfall clearing led to a much lower decline in bitcoin on the futures exchange than on the spot exchange
coinbase explained: "waterfall clearing is the most prominent in bitmex, which provides highly leveraged procts. During the sell-off period, bitcoin trading price on bitmex was much lower than other exchanges. Until bitmex was maintained at the time of the highest volatility (based on DDoS attacks), waterfall clearing was suspended and prices rebounded rapidly. When the st settles, bitcoin hovers around $5000, before plummeting below $4000. "
this opens up a theory that bitcoin should not have fallen to $3000 in the first place, which explains why bitcoin rebounded rapidly to $7350 in a V-shape

factor 3: rapid recovery to key support level
since the beginning of 2018, the level of $5800 has been an important support area in history. Avoid bitcoin prices falling between $3000 and $4000, except in December 2018
bitcoin prices quickly recovered from the $3000 range to $5800 in seven days. After three tests in March, the price of $5800 became a strong bottom, allowing bitcoin to continue its rally.

3. There are many ways to play digital assets, and the modes of each exchange are also different. At present, there are several mainstream models in the market:
1. OTC over-the-counter trading
OTC trading system provides information release places for buyers and sellers of digital assets. OTC market is easy to get acquainted with the previous over-the-counter trading mode, there is no fixed trading place, no fixed Trading rules, and no limited trading form
2. Currency transaction
currency transaction is mainly aimed at the transaction between digital assets and digital assets. One currency is used as the pricing unit to purchase other currencies. The currency transaction rule is also to complete the matching transaction according to the price priority and time priority
3. Perpetual contract trading system
perpetual contract is a derivative of futures cooperation. Like futures, it is a contract transaction, not a spot transaction. After you buy, you will not get digital assets. Development of digital asset trading platform, development of perpetual contract trading system
4. Digital asset mortgage system
digital asset mortgage system is a mortgage investment platform for global digital asset players, on which global players can mortgage certain digital assets.

4. Bitcoin is valuable because it is useful as a form of currency. Bitcoin has the mathematical characteristics of money (persistence, portability, interchangeability, scarcity, separability and identifiability) rather than relying on physical characteristics (such as gold and silver) or the trust of central authorities (such as fiat money). In short, bitcoin is backed by mathematics. With these characteristics, a form of money to have value requires trust and use. In contrast, this can be reflected in its growing base of users, businesses and start-ups. Like all currencies, the value of bitcoin comes directly from people who are willing to accept it as a means of payment, which is the only source In China, it is defined as a special Internet commodity by the central bank
the price of bitcoin is determined by supply and demand. When the demand for bitcoin increases, the price of bitcoin rises; As demand decreases, prices fall. At present, only a few bitcoins are in circulation, and new bitcoins are issued at a predictable rate of graal decline, which means that demand must follow this inflation level in order to maintain price stability. Compared with the market scale it may become, bitcoin is still a relatively small market at present. It does not need a lot of money to make the market price fluctuate up and down. Therefore, the price of bitcoin is still very unstable.

5. It is true that there is such a situation. The way to make money with such a situation is called moving bricks
explain the situation with a simple example:
for example, the retail price of a watermelon in its procing area is 50 cents a catty. Here is not the wholesale price, but the price that people in the procing area buy when they want to eat a watermelon. So the watermelon in the city's high-end District supermarket selling price may be 1 yuan a Jin, why such a 5 Mao gap? In short, because of different locations, because the scarcity of watermelon is different
these virtual currencies may have different buying and selling prices on various platforms at any time, resulting in price differences in different regions.

6. In other words, no one knows what price it should be, and the price is completely based on the transaction

7.

You can see it

OK in terms of contracts, uses the index price, and selects the weighted average price of each mainstream exchange as the contract trading index price. So you say that the contract index price of OK can reflect the latest mainstream quotation of bitcoin market. I have no opinion, but OK does not make much contribution. In addition to OK, the giants in the contract field also have a bitmex. In addition to the non physical delivery of the contract, it has an impact, but it is not reflected in the contribution of OK to the price of bitcoin

the second is spot . The transaction price of bitcoin is the consensus price reached by all exchanges in circulation all over the world at every moment. It changes every second e to the change of trading order. Specifically, there will be a price gap e to the size of each market, but the market will fill in the gap in a very short time. As for the impact of okex on the price of bitcoin, it will have a certain impact on the global price of bitcoin unless someone makes a shocking overbooking or selling order on OK. For example, some time ago, there were 7000 big orders for bitcoin in coin Anson, which caused the price of bitcoin in coin Anson to be different from that of other exchanges. However, as the market digested the order immediately, the gap was filled in again, which had no impact on the mainstream price. The market of the exchange is based on the rational investors' correct understanding of the bitcoin market. The buy / sell operation is the proct of the exchange traders. However, the price of bitcoin is global. You have to become a super maker of bitcoin to leverage the price of bitcoin, This market is too big (in addition to these head exchanges, there are emerging exchanges such as Matcha, BISS, and coin E)

8. Because the legal currency trading platform is OTC, that is, buyer to seller, the price and market price are not completely synchronized. What you said may be that the number of bitcoin purchased is relatively small, so the seller has the right to set the price higher than the market price. On the contrary, if you buy more, there may be a discount, which will be cheaper than the market price. Therefore, the most cost-effective way to buy bitcoin is to choose a large exchange, such as the head exchange like okex. Because there are many sellers, the transaction volume is large, and the price will be relatively cheap. At the same time, you can buy more at one time, which can also rece the cost. Later, you can make profits through the method of low absorption and high throw in the currency trading.