Quote from: JorgeStolfi on February 10, 2014, 02:15:13 AM

If the price at Coinbase is higher than that of other exchanges, people should flock there to sell, but no one would want to buy from them at those prices.

So Coinbase must be collecting lots of bitcoins and depleting their dollar reserves. And they cannot sell those bitcoins now without a substantial loss. This is what MtGOX was doing until a couple of days ago. (Perhaps Coinbese is trying to fill the market niche that MtGOX abandoned? Grin

)

Perhaps they believe that the prices will rebound to more than 730 soon?

Is there a general shortage of money in the other exchanges, that might be cured when the banks open today?

What is preventing arbitrage from working (buy cheap coins at other exchanges, sell them to Coinbase for 30%+ profit)? We knew why in the case of MtGOX, but that explanation does not apply to Coinbase, does it?

coin base is 4.3% higher