BITCOIN ANALYSIS: WEEK OF NOV 16 (ARBITRAGE)

Last updated: June 19, 2025, 20:56 | Written by: Linda Xie

The world of Bitcoin is a dynamic and ever-changing landscape. Bitcoin Cash BCH $ 397.00 Toncoin TON $ 3.16 Shiba Inu SHIB $ 0.00 Hedera HBAR $ 0.17 Litecoin LTC $ 87.16 Polkadot DOT $ 3.90 Monero XMR $ 324.67 Ethena USDe USDe $ 1.00 Bitget Token BGB $ 4.60 Dai DAI $ 1.00 Pepe PEPE $ 0.00 Pi PI $ 0.62 Aave AAVE $ 251.76 Uniswap UNI $ 6.02 Bittensor TAO $ 367.82 OKB OKB $ 51.40 Aptos APT $ 4.62 Cronos CROFortunes can be made (and lost) in the blink of an eye.One strategy that experienced traders often employ to navigate this volatility and potentially generate profits is Bitcoin arbitrage. Our analysis reveals how elevated funding rates and basis spreads led to significant arbitrage activity, while cooling volatility has stalled key market drivers like MicroStrategy's accumulation strategy, culminating in a technical breakdown below critical support levels.But what exactly is it, and how can you potentially capitalize on price discrepancies in different markets? Crypto arbitrage trading is a popular trading approach among experienced traders looking to exploit crypto price discrepancies across different markets. BTC $ 104,819.44This week's analysis, focusing on the week of November 16th, delves deep into the world of Bitcoin arbitrage, exploring its mechanics, potential risks, and rewards. An example of triangular arbitrage in crypto is buying bitcoin and exchanging it for Litecoin and Solana before converting Solana back to bitcoin and taking advantage of price discrepancies along the way to net you more bitcoin if the arbitrage trade works in your favor. Decentralized Exchange Arbitrage ExampleFrom understanding how Bitcoins price is determined across different exchanges to examining the barriers that can hinder arbitrage opportunities, we’ll provide a comprehensive overview of this advanced trading strategy.We’ll also touch on recent market events, such as the cryptocurrency market dip around November 16th, and how these events can impact arbitrage opportunities. CNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what's ahead withMoreover, we will explore different types of arbitrage, including spatial and triangular arbitrage, and examine tools like Bitcoin arbitrage calculators.By the end of this analysis, you'll have a solid understanding of Bitcoin arbitrage and whether it's a strategy suitable for your trading style and risk tolerance.Remember, knowledge is power in the crypto world, and informed decisions are key to success.

Understanding Bitcoin Arbitrage

At its core, Bitcoin arbitrage involves simultaneously buying and selling Bitcoin across different exchanges to profit from price differences. Complexity: Arbitrage trading is an advanced strategy that requires time, effort, and knowledge of price tools. If you re new to cryptocurrency, it s a good idea to stay away from arbitrage trading for the time being. What are the potential risks of arbitrage trading? While arbitrage trading might seem simple, there are risks involved.Think of it like buying a product at a lower price in one store and immediately selling it at a higher price in another store. Spatial Arbitrage. Spatial arbitrage is similar to cross-exchange arbitrage, however, the strategy takes advantage of price differences of the cryptocurrency at exchanges located in different regions.These price discrepancies, while often small, can add up, especially when dealing with large volumes of Bitcoin.These disparities often arise from market inefficiencies, varying liquidity pools, and the decentralized nature of cryptocurrency trading ecosystems.

Let's illustrate with a simplified example: Imagine Bitcoin is trading at $104,000 on Exchange A and $104,500 on Exchange B. Bitcoin price has fallen by 5.56% over the last week, its month performance shows a 7.50% increase, and as for the last year, Bitcoin has increased by 46.89%. See more dynamics on BTC price chart .An arbitrageur could buy Bitcoin on Exchange A for $104,000 and immediately sell it on Exchange B for $104,500, pocketing a $500 profit per Bitcoin (before factoring in transaction fees).

How Bitcoins Price is Determined

Understanding how Bitcoins price is determined is crucial for identifying arbitrage opportunities.Bitcoin prices are primarily determined by supply and demand on individual cryptocurrency exchanges.Each exchange operates independently, with its own order book reflecting buy and sell orders from its users. In terms of bitcoin at 20x leverage, the returns are impressive. By only risking 2 bitcoins to enter the position the gain is about 0.70 btc for a return of over 30% in just a few hours.When a buy order matches a sell order, a trade is executed, and the price is set for that transaction.

Several factors influence Bitcoins price on each exchange:

Market Sentiment: Overall market optimism or pessimism can drive buying or selling pressure, affecting prices.
Liquidity: Exchanges with higher trading volumes tend to have tighter spreads (the difference between the highest buy order and the lowest sell order), making it easier to execute arbitrage trades.
Geographic Location: Regional factors, such as regulatory news or local demand, can impact prices on exchanges located in specific countries.
Exchange Fees: Transaction fees can eat into arbitrage profits, so it's essential to consider them when evaluating opportunities.
News and Events: Major announcements, like regulatory changes or institutional adoption, can trigger price swings.

Types of Bitcoin Arbitrage

While the basic principle remains the same, arbitrage can take several forms:

Cross-Exchange (Spatial) Arbitrage

This is the most common type of Bitcoin arbitrage, as illustrated in the example above. Bitcoin Analysis from Tone Vays, Nov 16. Please note, this is a STATIC archive of website cointelegraph.com from October 2025, cach3.com does not collect or store any user information, there is no phishing involved.It involves buying Bitcoin on one exchange and selling it on another.

Triangular Arbitrage

Triangular arbitrage involves exploiting price discrepancies between three different assets, often on a single exchange.This strategy can also be called cross-currency arbitrage or three-point arbitrage.The idea is simple: trade the first currency to the second one, the second one to the third one, and the third one back to the first one.

For example, an arbitrageur might buy Bitcoin, exchange it for Litecoin, then exchange the Litecoin for Solana, and finally convert the Solana back to Bitcoin, profiting from the price discrepancies along the way.

Decentralized Exchange (DEX) Arbitrage

With the rise of DEXs, arbitrage opportunities have emerged between centralized exchanges and DEXs. PS: Cryptocurrencies including Bitcoin BTC coin are highly volatile and can experience sudden and significant price fluctuations in short period. The price of Bitcoin BTC to USD, like any other cryptocurrency is influenced by various factors such as market sentiment, use case, adoption rate, regulatory developments, and competition from other cryptocurrencies.These often involve taking advantage of price differences driven by the automated market maker (AMM) mechanisms on DEXs.

Barriers to Bitcoin Arbitrage

While Bitcoin arbitrage can be profitable, it's not without its challenges.Several barriers can hinder arbitrage opportunities and potentially lead to losses:

Transaction Fees: Exchange fees and network fees for transferring Bitcoin can significantly reduce profits.
Withdrawal Limits: Exchanges often have limits on the amount of Bitcoin that can be withdrawn daily, restricting arbitrage opportunities.
Deposit and Withdrawal Delays: Delays in depositing or withdrawing Bitcoin can cause price discrepancies to disappear before the arbitrageur can execute the trade.
Exchange Risks: The risk of exchange hacks or bankruptcies is always present.Holding Bitcoin on an exchange for arbitrage purposes exposes the arbitrageur to this risk.
Slippage: Slippage occurs when the price of Bitcoin changes between the time an order is placed and when it is executed, reducing profitability.
Market Volatility: Sudden price swings can wipe out arbitrage profits if the arbitrageur is unable to execute the trade quickly enough.
Regulatory Uncertainty: The regulatory landscape for cryptocurrencies is constantly evolving, which can create uncertainty and impact arbitrage opportunities.For example, recent news suggests new tax regulations in Australia could list Bitcoin among certain methods, potentially influencing trading activity and arbitrage strategies.

Bitcoin Arbitrage Calculator

A Bitcoin arbitrage calculator is a tool that helps traders estimate the potential profit from an arbitrage trade. Crypto arbitrage is a method of trading which seeks to exploit price discrepancies in cryptocurrency. To explain, let s consider arbitrage in the traditional sense. Arbitrage is a trading strategy in which a trader buys and sells the same asset in different markets, profiting from their differences in price.These calculators typically take into account the following factors:

Bitcoin price on different exchanges
Transaction fees
Withdrawal fees
Transfer times

While calculators can be helpful, it's important to remember that they are only estimates.Real-world results may vary depending on market conditions and execution speed.

Leverage and Bitcoin Arbitrage

Using leverage can amplify both profits and losses in Bitcoin arbitrage. At its core, bitcoin arbitrage involves simultaneously purchasing and selling bitcoin across different exchanges to capitalize on price differences. These disparities emerge from market inefficiencies, varying liquidity pools, and the decentralized nature of cryptocurrency trading ecosystems.While the snippet mentions the impressive returns possible with 20x leverage, it's crucial to understand the immense risk involved.

For instance, the provided example states: ""In terms of bitcoin at 20x leverage, the returns are impressive.By only risking 2 bitcoins to enter the position the gain is about 0.70 btc for a return of over 30% in just a few hours.""

While this example shows a potential profit of over 30% in a few hours, a small adverse price movement could lead to significant losses, potentially wiping out the initial investment. That s Bitcoin arbitrage in a nutshell. If you want a more detailed explanation of Bitcoin arbitrage and how it s conducted, keep on reading. Here s what I ll cover: How Bitcoin s price is determined; A simplified example of Bitcoin arbitrage; Barriers to Bitcoin Arbitrage; Bitcoin arbitrage calculator; Conclusion Should you tryHigh leverage is generally not recommended for beginners and should only be used by experienced traders with a thorough understanding of risk management.

Recent Market Events and Arbitrage Opportunities (Week of Nov 16)

The snippets mention a cryptocurrency market crash around November 16th, with Bitcoin plunging significantly. A triangular arbitrage can also be called cross-currency arbitrage or three-point arbitrage and may take place on a single or several exchanges. This arbitrage connects three assets, and the idea is simple trade the first currency to the second one, the second one to the third one, and the third one to the first one.Such events can create temporary price discrepancies across exchanges, potentially leading to arbitrage opportunities. Bitcoin Analysis Week of Dec 14. Ecosystem . English . News . Indices . In Depth . Learn . Newsletters Bitcoin Analysis: Week of Nov 16 (Arbitrage) Bitcoin Analysis ; Add reaction .However, high volatility also increases the risk of slippage and execution delays. Crypto arbitrage is a low-risk gain strategy because it involves lower risk than traditional trading. Predictive analysis can sometimes be incorrect, whereas exchange price differences are legitimate. The risk exposure automatically decreases because it only takes a few minutes to complete a trade in crypto arbitrage.During periods of extreme volatility, exchanges may also experience technical difficulties, further complicating arbitrage trades.

The analysis mentioned in the provided snippets suggests that entities took short or bearish bets in Bitcoin (BTC) futures listed on the Chicago Mercantile Exchange (CME), causing backwardation.Elevated funding rates and basis spreads led to significant arbitrage activity. Did you enjoy this article? You may also be interested in reading these ones: Bitcoin Analysis: Week of Nov 23 (Concept Review) Bitcoin Analysis: Week of Nov 16 (Arbitrage)However, cooling volatility can stall market drivers, impacting arbitrage.

Analyzing Arbitrage Investment Strategies in the Bitcoin Spot Market

The evaluation of arbitrage investment strategies in the Bitcoin spot market is based on the concept that substantial price differences will eventually revert to a state of parity. The live Bitcoin price today is $104,364.35 USD with a 24-hour trading volume of $50,255,072,425.45 USD. We update our BTC to USD price in real-time.This means that if a price discrepancy exists between two exchanges, the market will eventually correct itself, eliminating the difference.

Market frictions, such as transaction costs, play a significant role in the profitability of arbitrage strategies.These costs must be factored into the analysis to determine whether an arbitrage opportunity is truly viable.A high transaction cost can easily negate a small price difference, rendering the trade unprofitable.

Potential Risks of Arbitrage Trading

Arbitrage trading, while potentially lucrative, isn't without risks.The key risks include:

Execution Risk: Failing to execute the trade quickly enough to capitalize on the price difference. Bitcoin realtime charts for order book, trades and arbitrage opportunities. Why? All major USD, EUR, GBP, CNY exchanges. Historical market and limit order execution prices corrected for volume. VWAP. Indicators to account for low liquidity and thin markets. Realtime arbitrage tables.This can be due to slow internet connections, exchange delays, or high market volatility.
Counterparty Risk: The risk that one of the exchanges involved in the trade may become insolvent or experience technical issues, preventing the arbitrageur from completing the trade.
Market Risk: The risk that the price of Bitcoin may move against the arbitrageur's position before the trade can be completed. Latest news about bitcoin, ethereum, blockchain, mining, cryptocurrency prices and more . was an early example of arbitrage. The platform would list Bitcoin prices withThis is particularly relevant in volatile markets.
Regulatory Risk: Changes in regulations can impact the legality or profitability of arbitrage trading.

Practical Example of Crypto Arbitrage

Let's consider a practical example using the provided information:

Pair: LTC/USDT

Exchange 1 (Gate.io): Buy Price = $150

Exchange 2 (Mexc.com): Sell Price = $160

Arbitrage Opportunity:

Buy LTC for $150 on Gate.io.
Transfer LTC to Mexc.com.
Sell LTC for $160 on Mexc.com.

Gross Profit = $10 per LTC

However, before concluding profitability, you need to deduct transaction fees and transfer fees from both exchanges. For instance, if the order to buy bitcoin for $60,000 is the most recently matched order on an exchange, this price becomes the latest price of bitcoin on the platform.If total fees are $3 per LTC, the net profit would be $7 per LTC.

Spatial Arbitrage: Capitalizing on Regional Price Differences

Spatial arbitrage takes advantage of price differences of cryptocurrency at exchanges located in different regions.For example, political instability in one country might cause increased demand for Bitcoin, driving up the price on local exchanges. The cryptocurrency market crashed today, as Bitcoin, the largest cryptocurrency plunged around US$ 15,750, on November 16. Other large cryptocurrencies are falling the trend. Ethereum wasAn arbitrageur could buy Bitcoin on an exchange in a different region with a lower price and sell it on the exchange with higher demand, capturing the price difference.

Addressing the Complexity of Arbitrage Trading

Arbitrage trading is an advanced strategy demanding considerable time, effort, and a thorough understanding of pricing tools. In the latest hurdle to beset the cryptocurrency sphere in Australia, a new government tax paper has listed Bitcoin among the methods which Continuing its open ear policy towards digital currency, the Canadian Senate last week held an in-depth Q A with an industry spokesperson oIf you're new to the world of cryptocurrency, it's generally recommended to steer clear of arbitrage trading until you gain more experience and knowledge of the market.

Tone Vays' Bitcoin Analysis and its Relation to Arbitrage

The provided snippets mention Bitcoin analysis from Tone Vays on November 16th. We further assess the performance of arbitrage investment strategies in bitcoin spot market. The arbitrage investment strategy is designed around the premise that significant price discrepancies ultimately result in convergence to parity. Market frictions are accounted for by incorporating transaction costs into the analysis.While the specific content of that analysis isn't provided, it's safe to assume that it likely covered technical analysis, market trends, and potential trading opportunities.Such analysis can be valuable for arbitrageurs, helping them identify potential price discrepancies and assess market volatility.

Conclusion: Is Bitcoin Arbitrage Right for You?

Bitcoin arbitrage can be a profitable strategy for experienced traders who understand the risks involved.It requires careful analysis, quick execution, and a thorough understanding of exchange fees, withdrawal limits, and market volatility. Let's use the example pair LTC/USDT on Gate.io and Mexc.com for demonstrating crypto arbitrage trading: Gate.io: LTC/USDT Buy Price: $150 Mexc.com: LTC/USDT Sell Price: $160 Arbitrage Opportunity: Buy LTC for $150 on Gate.io. Transfer LTC to Mexc.com. Sell LTC for $160 on Mexc.com.While tools like Bitcoin arbitrage calculators can be helpful, they should be used with caution, as real-world results may vary.Remember, the cryptocurrency market is highly dynamic, and arbitrage opportunities can disappear quickly. Analysts said these entities took short or bearish bets in bitcoin (BTC) futures listed on the Chicago Mercantile Exchange (CME), causing backwardation, where futures prices are lower than theBefore engaging in Bitcoin arbitrage, it is essential to conduct thorough research, develop a solid risk management strategy, and only invest what you can afford to lose.While strategies like leveraging existing crypto holdings for arbitrage might be tempting, always weigh the potential downsides carefully.The information provided this week should give you a stronger foundation for understanding whether or not arbitrage is a worthwhile endeavour for you.

Key Takeaways:

Bitcoin arbitrage involves profiting from price discrepancies across different exchanges.
Several barriers can hinder arbitrage opportunities, including transaction fees, withdrawal limits, and market volatility.
Leverage can amplify both profits and losses.
Thorough research and risk management are essential.

Disclaimer: This article is for informational purposes only and should not be considered financial advice.Trading cryptocurrencies involves significant risks, and you should consult with a qualified financial advisor before making any investment decisions.