Swap Sites Start Squeezing Profits from BTC to XMR Pair Amid Rising Spreads

I observe that swap platforms are increasingly controlling the exchange rate in the BTC to XMR trading pairs. The offered rates are diverging from the 'free-market' rates observed on the last few listed exchanges. This is primarily visible through wider buy/sell spreads and notices from platforms like Houdini indicating that the swap process might take longer than usual. This scenario suggests that liquidity may be shrinking on one side of the market or possibly both. Alternatively, these swap sites could be intentionally widening their spreads to increase their profit margins, even when traders select variable rates without locking in fixed ones. Such behavior is often seen during periods of heightened volatility, especially when platform administrators wish to exploit the situation for more profit by capitalizing on the speculative activity of users. Considering these developments, caution is advised. The divergence from the free-market rate and the internal warnings from swap platforms indicate that traders may not be getting the most favorable rates and should be aware of potential additional costs or delays. This environment could lead to increased spreads and reduced liquidity, making it less attractive for arbitrage or quick trades. I recommend that traders closely monitor the prices across multiple exchanges and consider using more transparent or traditional trading venues if they seek better rates and reliability. During volatile periods, trust in swap sites' rates might erode, and traders should prioritize risk management. Overall, the signs suggest a less favorable trading environment for the BTC to XMR pair on these swap platforms in the near term.