Take from it what you will-
BTC/USD fell as low as 4,000USD. At the same time, on the Chinese exchanges, BTC/CNY crashed to as low as 3,300USD.
This created an arbitrage opportunity of just over 21% for anyone with CNY ready to go. They could simply buy BTC on their local exchanges and send it to their accounts or accounts of anyone they knew on the rest of the world's exchanges and nearly instantly realise a 20% gain.
On CNY exchanges BTC has rebounded around 18.5% off the lows and the gap is currently down to 3912USD on CNY exchanges vs around 4180USD on most other exchanges. That means the arbitrage gap is down to 6.7%. This gap should also close as arbitragers exploit it and once it closes, this factor that has likely caused a lot of selling on the non-Chinese exchanges will disappear.
- thelimon