Who Sets The Price Of Bitcoin?

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Use the discount code YT99 to get the best price.

In this video, I discuss how arbitrage helps to drive the global price of Bitcoin.

Arbitrageurs can buy or sell Bitcoin on different exchanges or OTC desks, or even in different countries, in an effort to profit from the small price differences. This arbitrage causes the price of Bitcoin to converge globally.

Countries without well-established Bitcoin exchanges or with capital controls may see persistent premiums that cannot be arbitraged away.

In places that are considering banning Bitcoin, Bitcoin tends to trade at a premium price-- which gives us a glimpse into the upside price potential that might occur in countries that ban Bitcoin.

Not investment advice! Consult a financial advisor.

CME Bitcoin futures:

My favorite Bitcoin dashboard:

Bitcoin price map:

Bitcoin kimchi premium:

Countries with Bitcoin premium prices:

I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos.

My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.

#bitcoin
#crypto
#arbitrage

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[Bitcoin_University]

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[nobobonobo]

Me pushing up the price with my $50 buy order

[ColtonRDean]

You explained arbitrage well, but I was expecting an explanation of how the market sets the price of BTC.

It seems to me that miners with “fresh” BTC could set whatever price they want, because that would be BTC that hasn’t gone through any wallets or exchanges, and isn’t blockchain connected to anyone or anything anywhere yet.

[dekutube]

Thank you. Matt, would you consider doing a video on your thoughts on what it will take for individuals and companies and governments to realize that Bitcoin is truly not a risk asset and that it is to their advantage to buy it?

[hosgs]

Here from your " A beginners guide to the stock market" book. I have been buying and trading for years but read it as a refresher. Looking forward to check out your videos. Got a sub.

[captainotto]

The primary use case for stablecoins before fraud and graft became the rule was to support fast fiat transfers with minimum friction. And they do still perform this role to some degree, but now you have the added risk of them blowing up while you're holding them. Regardless, they have become of great utility to arbitragers and other volume traders.

[carlosyleddy]

Thank you. Also a video how the futures markets impacts the actual price of bitcoin will we great!

[greggomusic]

Another great video! Love the content and am a huge fan for years now. Thanks for all you do! I share everything you put out with my friends and family.

[Au]

Swan’s OTC service is via Prime Trust.

[mc-kzzn]

Is it fair to assume the arbitrage play here is mostly (if not completely) algo driven? I think it would make a great video for you to outline what you believe would make an ideal set of events, a roadmap, for bitcoin in the next 1, 5, 10yr time frame; what would you like to see and what are the most important things such as adoption, regulation, soverigns, other currencies, etc? Your perspective is interesting and I continue to learn, thank you Matthew for your dedication!

[derek.seaborn]

When you arbitrage in the ways you describe, you wouldn't send the bitcoin to the other exchange to sell it. You'd start with an amount of bitcoin and cash on both exchanges and you'd execute the orders (buying bitcoin & selling bitcoin) at exactly the same time to remain delta neutral. If you had to send the bitcoin to the other exchange, you'd be taking on directional risk, which defeats the purpose of the arbitrage.

[stevef]

As a test of my own knowledge before watching the video, I’m going to say that it is the supply of buyers and sellers at certain prices that sets Bitcoin, and once buyers run out at a certain price, the price goes down, and when the sellers run out at a certain price, the price goes up, which would makes sense as to why big money moves the market during their buys/sells.

[MrDayinthepark]

I did some similar arbitrage a few months before Mount Goth collapsed. As you suggest, I made money, but what I made was limited by limited capital.

[samsunspor]

Truly love your candidness, I DCAed today again for BTC AMZT26 and ETH

[rebecawoodward]

Interesting! But I use a decentralized Utopia p2p ecosystem. It has a lot of features, but what I like the most is that you can mine Crypton, a private cryptocurrency, on very favorable terms.

[modelchanger]

Hey Matt, how do you get the dark background for blank slate? I can only get the white background.

[ChancellorSMNDU]

Superb exposition on arbitrage
thank you again

[Captnsouthpaw]

Forgive me if you’ve answered this in another video, I’ve been going through your catalog one by one; does the fiat price of btc matter in terms of long term investment? Or is it worth it for the sake of itself and its future.

[adaptivekalman]

I set the price. Every time I buy with 100 dollars the price drops and when I don't the price goes sideways. Fear my whale power.

[fittingu]

1 BTC = 1BTC. Never sell your Bitcoin.