Altcoin News: CoinMarketCap Eliminated Bitfinex Data When Calculating the Inter-Exchange Rate of Bitcoin

May 6, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The crypto tracking service CoinMarketCap no longer takes into account Bitcoin price information provided by Bitfinex crypto exchange when calculating the average market value. A pair of BTC/USD Bitfinex on CoinMarketCap is now accompanied by a corresponding mark.

Credit:CoinMarketCap

Currently, Bitcoin on Bitfinex continues to trade at more than $300 above the values ​​of other major exchanges. In the BTC/USD pair of Bitfinex, which accounts for 0.21% in the total cryptocurrency trading volume, Bitcoin costs $5,991, and at Coinbase and other exchanges, it is just about $5,600.

“The price of any cryptocurrency is a volume weighted average of market pair prices (1) for the cryptocurrency. The higher percentage of volume contributed from the pair, the more influence it has on the average price. The rationale for using a weighted average is because in general, markets with higher volume have higher liquidity and are less prone to price fluctuations. Some prices are manually excluded from the average, denoted by an asterisk (*) on the markets tab if the price does not seem indicative of a free market price; for example, when an exchange disables withdrawals or deposits, or regulatory conditions make it impossible for anyone else outside of a certain geographical region to buy coins. Some prices are also automatically excluded when our algorithms detect that the reported price is a significant outlier when compared to other market pairs for the same cryptocurrency, denoted by three asterisks (***) on the markets tab,” CoinMarketCap describes its methodology.

Events are developing against the backdrop of the prosecution of Bitfinex by the New York prosecutor’s office due to the lost $850 million and the alleged IEO of the Exchange, during which it may try to raise $1 billion.

Last week, Bitfinex, among other exchanges, joined the alliance formed by CoinMarketCap to ensure transparency of pricing in the cryptocurrency market.

Author: Marko Vidrih