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A sharp price spike on the BTC/USDT trading pair caused Bitcoin to briefly soar to as much as $138,000 earlier today on cryptocurrency exchange Binance US.
Bitcoin abruptly increased in price to around $138,070, according to a screenshot posted by Bitcoin Jack, before dropping to around $28,000.
Wu Blockchain reports, "The BTC/USDT trading pair BTC price on Binance US briefly rose to 138,070 USDT and then quickly returned to the normal. Since being sued by the SEC, market makers left, and the market depth of Binance US has dropped by 78.8%."
The BTC/USDT trading pair BTC price on BinanceUS briefly rose to 138,070 USDT, and then quickly returned to the norma. Since being sued by the SEC, market makers left, and the market depth of Binance US has dropped by 78.8%. https://t.co/sbDBPRUrbd pic.twitter.com/xVy3TXeLqF
— Wu Blockchain (@WuBlockchain) June 21, 2023
Market depth is a term used to describe how liquid a financial market is. According to a Kaiko analysis, Binance.US's market depth has decreased compared to May, indicating that market makers and traders have left the exchange.
The market share of Binance.US has decreased in comparison to other exchanges accessible to customers in the United States, falling to 1.5% from 8% at the beginning of this year, according to a report published on Tuesday by Kaiko.
The study also reveals a reduction in Coinbase's market share, the largest cryptocurrency exchange in America, from 56% to 50.5%.
At the time of writing, BTC was up 8.61% in the last 24 hours to $29,094.
Binance.US trading volume declines
Trading volume on Binance.US has been dropping since June 6, the day after the SEC announced charges against Binance and its CEO, Changpeng "CZ" Zhao.
According to CoinGecko data, the U.S.-based exchange reported a trading volume of almost $250 million on June 6. This has fallen by nearly 94% to just over $13 million, marking the lowest trading volume in almost a year.
After a U.S. district judge approved a consent order, Binance and the United States Securities and Exchange Commission (SEC) came to an arrangement to prevent a full asset freeze on the platform and preserve customer assets there.
Alex Dovbnya
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Dan Burgin