Source
r/BitcoinAUS•
Makingdo

Price disparity between AUS exchanges and coinmarketcap.com

Hey guys, very new to this and looking to deposit more AUD to have a bit of a play with some coins. However after looking at the price of BTC, ETH, LTC etc on places like Independent Reserve and BTC Markets I dont understand why their prices are so much higher than the price stated on coinmarketcap.
For instance right now BTC is $22k aud on BTCMarkets but coinmarketcap has the price at $19k aud. What am I missing here?

Posted Jan 8, 2018, 10:24 PM UTC

923
gibbocool•

It's only been like this for a couple of days. If you wait a week or so it should even out. But it might not as a lot of Aussies are trying to get into the market.

4
MakingdoOP•

Thanks for you're reply, is there another way to get my AUD into the market at a reasonable price?

1
kidpokeineyegif•

Short answer: No.

Long answer: These are marketplaces: you are buying off someone else and need to agree on a price. The person you want to buy off on the marketplaces you have access to has a different idea than you on what is a reasonable price. Australia has a higher demand for crypto than on coinbase therefore people are willing to pay more here.

4
MakingdoOP•

Ok thanks, that makes sense. Supply and demand.

1
whiteystolemyland•

I looked at opening overseas bank accounts etc but it was too difficult and if you try buying from a foreign exchange then you might cop currency conversion fees, credit card fees or various other deposit and withdrawal fees.

If you're savvy and lucky enough then you might be able to take advantage of arbitrage.

1
Oz-ark•

If you use that gateway to sell again later, you benefit from the disparity by the same amount. So it shouldn't matter is my take on it.

3
Hofinoz•

Been trading on BTC markets for a while and there is usually a 5-10% premium on aud crypto. Nearly all are currently running at a 20% premium. To much money is coming in and just buying at any price. More buyers than sellers = inflated prices.

3
cl3ft•

It depends on the amount. If you want <$500 Coinbase is normally more closely aligned with international exchanges. Their large fees make them equivalent to the normal AU exchange premium of 4% to 5%.

Because of the banks crackdown on Poli payments last week the Market based AU exchanges are in a bit of chaos right now and overpriced.

1
GateFiveTechno•

This is because of market inefficiency, it's too hard for people to access the Australian markets and take advantage of the arbitrage opportunities. Same thing happens with Korean exchanges. I think the price disparity will be around for a while, until arbitrage bots close the gap.

1
throwaway_cashout•

This is common every time the price jumps quickly.

When the price settles (like when it was at US$300 for months), the gap goes away, but typically when the market is excited and the price is moving quickly the AU market moves ahead of the international market.

1
kller12•

I've never seen Aussie prices so inflated. This is nuts.

Currently at 15.5% inflation compared to the US.

1