Ripple CTO David Schwartz Weighs in on Bitcoin Price Discrepancies on Coinbase

Ripple CTO David Schwartz recently weighed in on a discussion on X sparked by a post by a user who pointed out a disparity in Bitcoin prices on Coinbase.

Recently, there was a discussion on X, started by a user who noticed a disparity in Bitcoin's price on Coinbase. The cryptocurrency market saw some volatility in the early Monday session, with Bitcoin seeing a low of $102,105 after reaching a high of $107,137 earlier.

The X user pointed out the gap in Bitcoin's price on Coinbase, stating, "Bitcoin is currently $103,500. If you want to buy on Coinbase, they charge $104,500. If you want to sell, it’s $101,950."

This post caught the attention of Ripple CTO David Schwartz, who intervened to shed light on Coinbase's pricing model. Schwartz asked, "Are you placing offers on their order book, or are you using them as a broker to buy and sell? The pricing for these two services is very different."

Schwartz's response elaborates on the distinction between placing bids or offers on the Coinbase order book and engaging with the platform as a broker for buying and selling crypto, each coming with its own cost implications.

The discussion with the Ripple CTO further explains the concept of 'spread' when buying or selling cryptocurrencies. It refers to the difference between the asset's current market price and the price at which it is purchased or sold.

Crypto exchanges, like Coinbase, often factor in a spread in the price at which users buy and sell cryptocurrencies, as well as an exchange rate when users convert from one currency to another. For instance, if an exchange lists Bitcoin at $103,500 but charges $104,500 for buying and $101,950 for selling, and a user wishes to buy 0.01 Bitcoin at a price of $104,500, they will pay a total of $1,045 for the cryptocurrency.

In other news, the crypto market saw a shift in the early Monday trading session, with nearly all major cryptocurrencies trading lower after notching gains on Sunday. XRP was down 3.91% in the last 24 hours to $2.31.

Bitcoin, on the other hand, saw a move to an all-time high of $107,137 early on Monday before reversing course and falling to an lown of $102,105.

According to CoinGlass data, over $669 million in crypto holdings were liquidated during the recent market volatility, with bullish positions accounting for $465 million and short positions accounting for $203 million.