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Bitcoin (BTC) Trades at $1,000 Discount on Binance US, Here's What Happened

Mon, 06/26/2023 - 16:25
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Tomiwabold Olajide
Price of Bitcoin has seen disparity on Binance US compared to other exchanges
Bitcoin (BTC) Trades at $1,000 Discount on Binance US, Here's What Happened
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Kaiko, a research firm, observed in a new tweet that Bitcoin continues to trade at a nearly $1K discount on Binance.US crypto exchange.

Per a chart posted by Kaiko, the price of Bitcoin has seen a disparity on Binance US compared to other exchanges since June 22. The disparity continues even today, according to the chart.

The price discount seen for the BTC/USD pair on Binance US coincides with a June 22 announcement that hinted that the crypto exchange might discontinue USD withdrawals soon. 

On June 22, Binance US announced that although USD withdrawals on the site are still fully operational, it advised users to use, withdraw or convert USD to a stablecoin to continue trading crypto to crypto, as the company anticipates that its banking partners may discontinue USD withdrawals "in the near future."

Given the statement, clients of Binance US may be willing to sell Bitcoin at a discount to withdraw their USD; as a result, the BTC/USD price tag is trading at a discount of close to $1,000 on Binance US compared to other crypto exchanges.

In light of Binance's legal dispute with the Securities and Exchange Commission (SEC), the exchange suspended USD deposits on June 9 and informed its users of the impending suspension of fiat withdrawal channels. It informed its customers at the time that its banking partners were getting ready to halt fiat withdrawal routes as early as June 13; however, that has not happened yet.

Bitcoin (BTC) Unexpectedly Spikes to $138,000 on Binance.US. Here’s What Happened

As reported, during the previous week, the price of BTC abruptly increased to as much as $138,000 at one point on Binance.US. This might be brought on by the crypto exchange's declining market depth.

Kaiko's study indicates that Binance.US's market depth has fallen since May, which suggests that market makers and traders have abandoned the exchange. This was alluded to as the reason for the price fluctuation.

Compared to other exchanges open to consumers in the U.S., the Binance.US market share has shrunk, falling to 1.5% from 8% at the start of this year.

At the time of writing, BTC was trading at $30,508.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.