With Bitfinex struggling to find an alternative to Wells Fargo for outbound US wire transfers, it has become almost impossible for US-based customers to access bitcoin liquidity through the Bitfinex market. As such TradeBlock’s XBX index will no longer include Bitfinex trade data as part of the XBX index calculation.
The Bitfinex XBT/USD price has seen a notable increase since its users began experiencing delays and issues with USD withdrawals. It can be theorized that Bitfinex customers are increasingly buying bitcoin at the exchange in order to move their funds to other venues or to their wallets. The theory would explain the XBT/USD price premium over the rest of the markets observed at Bitfinex during the days following the USD withdrawal freeze (currently at 7% over the XBX index reference rate). Notably, the price discrepancy at Bitfinex has been taken into account by the algorithm underlying the XBX index and the exchange’s weight in the index has been automatically and considerably discounted. By design, this has mitigated the influence of Bitfinex problems in the USD reference rate for the price of bitcoin provided by the XBX index.