Traders Concerned As Bitfinex Halts Fiat Deposits

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One of the biggest bitcoin exchanges in the world has stoked fears because of another Mt. Gox style meltdown is closing. In the recent weeks, the biggest BTC  exchange of the dollars in the United States. Today, the Bitfinex reveals that they will be unable to accept the incoming wires starting from tomorrow.

There are no details offered by the Bitfinex on the reason the subject related to the previous dispute that started earlier this month. They will not start accepting the transfers. However, the Bitfinex is saying that they are now working on services related to the banking concerns, but the market observes suggest the reason for the issues.

The Cryptocurrency Fund Manager Jacob Elisoff says that this condition has provoked and he further discusses the resulted problems in the withdrawal that can make abnormal pressures in the market.

Widening exchange spreads

Due to these developments, the exchange spreads have widened as the Bitfinex is enjoying a premium of more than $50 in some of the cases during the reporting time as per the data from CryptoCompare.

The bitcoin was trading at $1,185 at 18:55 UTC on Bitstamp as compared to roughly $ 1,235 on Bitfinex and $ 1,190 on GDAX.

This spread takes back to the last days of Mt Gox when the data displays that the exchange trades consistently between 10% and 26 % above the competitors.

Concerns were raised by the analysts as they were optimistic that the Bitfinex emerges from this condition unscathed. Bitfinex who was the victim of a hack past August has shown a willingness for bouncing back from the operational problems.

They had loose around $65 million in customer funds and Bitfinex is looking to socialize these losses among the users of the exchange by using a new cryptographic token for crediting customers. Later, this system will enjoy praise from the supporters who see it as an exciting way of avoiding the bankruptcy.

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