A lot of Bitcoin users are growing concerned over the Bitfinex exchange. It is well known the company is dealing with banking issues. However, there have been no news updates for nearly two weeks now. Forging a new bank partnership is not easy by any means, though. Despite these issues, the exchange keeps setting higher Bitcoin prices every day.
That seems to be the primary question on everybody’s mind right now. No one knows for sure what the Bitfenix situation is at this stage. Two weeks ago, the company mentioned they are struggling with their Taiwanese bank account. Ever since that time, there has been no significant update to inform users. That is a very disturbing development, considering Bitfinex is still actively trading Bitcoin right now.
What Is Bitfinex Planning To Do?
Despite the banking problems people are still depositing US Dollars to their Bitfinex account right now. However, withdrawing funds in USD is virtually impossible right now. This creates an artificially inflated Bitcoin price, which currently sits at US$1,546. The gap with other leading exchanges has increased to over US$125 over the past few days. It seems other exchanges are trying to chase the Bitfinex price, which will eventually lead to a price bubble.
While Bitfinex is not the only company suffering from issues, the lack of communication is worrisome. It is important to note the company is not insolvent by any means. However, the lack of progress updates – large or small – has a lot of people on edge. So far, this has not affected the bitcoin price, but that may only be a matter of time.It has been nearly two weeks since the previous update, which is far too long.
It is evident there are some troublesome developments in the Bitcoin world. None of the affected exchanges has successfully resolved its USD withdrawal issues yet. We all know banks do not like to work with Bitcoin companies by any means. Finding a new partner may prove to be quite difficult. At the same time, the increasing Bitcoin price is not a positive development either. Once withdrawals are resumed in China and on Bitfinex, the price might plummet rather quickly. This is a very tense situation, to say the least.
Header image courtesy of Shutterstock