Research company Kaiko noted in a recent tweet that Bitcoin continues to trade on Binance at a discount of around $1K.US cryptocurrency exchange.
According to a chart published by Kaiko, since June 22, there has been a difference between the price of Bitcoin on Binance US and other exchanges. The graphic shows that the inequality still exists today.
The price cut for the BTC/USD pair on Binance US occurs at the same time as an announcement made on June 22 that suggested the cryptocurrency exchange would soon stop allowing USD withdrawals.
On June 22, Binance US announced that although USD withdrawals on the platform are still fully functional, users are advised to use, withdraw, or convert USD to a stablecoin in order to continue trading crypto to crypto because the company expects that its banking partners may stop accepting USD withdrawals “in the near future.”
As a consequence of the announcement, the BTC/USD price tag is trading at a discount of close to $1,000 on Binance US compared to other cryptocurrency exchanges. Clients of Binance US may be prepared to sell Bitcoin at a discount in order to withdraw their USD as a result of the remark.
On June 9, Binance’s exchange banned USD deposits and told customers that fiat withdrawal channels will soon be shut down due to the firm’s legal battle with the Securities and Exchange Commission (SEC). It had advised clients that its banking partners would be preparing to stop fiat withdrawal channels as early as June 13; however, this has not yet occurred.
As was previously mentioned, during the previous week, the price of BTC on Binance.US rapidly rose to as high as $138,000 at one point. The falling market depth of the cryptocurrency exchange may be the cause of this.
According to Kaiko’s research, Binance.US’s market depth has decreased since May, which may signal that traders and market makers have given up on the exchange. This was hinted to as the cause of the price swings.
The market share of Binance.US has decreased in comparison to other exchanges accessible to American users, going from 8% at the beginning of this year to 1.5% now.
BTC’s price at the time of writing was $30,508.
