Analysis Updated
Why do BTC price gaps exist?
Bitcoin trades on hundreds of venues worldwide. Prices look unified on indexes, but under the hood each orderbook is shaped by its fiat rails, user base, and local regulation. Here’s why spreads emerge and how to interpret them.
Liquidity fragmentation
There is no single BTC/USD market—only clusters of BTC/USDT, BTC/USD, BTC/TRY, etc. Each quote depends on the stablecoins and fiat currencies flowing through that exchange. When liquidity dries up (e.g., USDC depeg, local bank issues), spreads jump.
Regional premiums
Strict capital controls cause “Kimchi premium”-style gaps. Korean won, Turkish lira, and Brazilian real markets often trade at a premium during local hype cycles. Arbitrageurs bridge the premium only if they can legally convert the fiat back out—otherwise prices stay dislocated.
Operational frictions
- Slow withdrawals or maintenance windows delay inventory transfers.
- Stablecoin liquidity (USDT vs. USDC) differs per region, affecting synthetic FX rates.
- API throttling or outages hide spreads until orderbooks resync.
How to monitor gaps responsibly
Use tools like ArbiScope for the early-warning view, then verify feasibility: Can you withdraw from exchange A fast enough? Are both assets quoted in the same stablecoin? Will fees eat the spread? Identifying gaps is only half the job—executing safely is the other half.
Disclaimer
Historical spreads do not guarantee future profits. Market structure and regulations change quickly. Always perform your own research and comply with local laws.