The Truth Behind the Bitcoin Price Plunge Exposed! CTO Reveals the Insider Story of Trading Spreads

Recently, the price of Bitcoin has experienced extreme fluctuations, with astonishing buy-sell price spreads on platforms, raising concerns among investors. One user pointed out that the buying price reached $104,500, while the selling price was only $101,950, a gap of over $2,500, causing chaos in the market.

Ripple's Chief Technology Officer David Schwartz publicly responded, revealing the root cause of the price differences: some platforms serve as both exchanges and brokerage services. In an exchange model, prices are transparent, and the order book is displayed in real-time; whereas the brokerage model includes additional fees and spreads, which are convenient and quick but come at a higher cost.

He reminded investors that understanding their order placement methods is crucial, especially during times of extreme market volatility, as brokerage price gaps can be magnified. In simple terms, the buy-sell price spread is a result of the platform's operating mechanism, not a market anomaly.

This explanation helps retail investors recognize the essence of trading and avoid being cut down by hidden fees. For future investments, it is essential to pay attention to trading details to avoid pitfalls.