Ripple CTO Analyzes Bitcoin Spread as Market Swings Sharply

Bitcoin experienced sharp volatility during early Monday trading, triggering widespread discussion across the crypto community. After reaching a new all-time high of $107,137, Bitcoin quickly dropped to a session low of $102,105. This sharp reversal also impacted major altcoins, including XRP, which declined 3.91% over the past 24 hours to $2.31.

During this volatile period, a user on social platform X pointed out a notable disparity in Bitcoin prices on Coinbase. According to the user, Bitcoin’s market price stood at $103,500. However, Coinbase listed the buy price at $104,500 and the sell price at $101,950. This pricing discrepancy drew attention to the platform’s spread.

David Schwartz Responds with Key Insight

Ripple CTO David Schwartz responded to the post, offering an explanation for the observed price difference. He 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.”

Are you placing offers on their order book are you using them as a broker to buy and sell? The pricing for these two services is very different.
— David 'JoelKatz' Schwartz (@JoelKatz) May 19, 2025

With this comment, Schwartz highlighted an important distinction. Users who place direct offers on Coinbase’s order book experience pricing based on market supply and demand. In contrast, users who rely on Coinbase’s brokerage services often pay an additional spread, which results in less favorable prices for both buying and selling.

Understanding the Spread on Coinbase

The spread refers to the difference between the price at which a platform sells an asset and the price it offers to buy it. For exchanges like Coinbase, this spread includes service costs and potential slippage due to market movements. Therefore, traders who prefer convenience or fast execution might pay a premium when using Coinbase as a broker instead of engaging directly with the order book.

The price drop came shortly after Sunday’s rally, reversing gains across the board. Data from CoinGlass showed that the recent volatility led to over $669 million in crypto liquidations. Of that total, bullish traders lost $465 million, while short positions accounted for $203 million in losses.

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David Schwartz’s explanation sheds light on Coinbase’s pricing structure and how the spread affects user transactions. As volatility remains high, understanding how platforms calculate prices becomes even more essential for crypto traders aiming to reduce costs and improve outcomes.

Lanre Durojaiye

Mr. Durojaiye Olusola is a finance graduate and cryptocurrency writer with over a year of experience providing market insights and clear, well-researched analysis. Dedicated to helping readers understand blockchain trends and digital asset developments.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.