Bitcoin (BTC) is selling for almost a $3,000 discount on Binance.US, making it a much better rate than global bargain prices – but there’s only one problem.
On July 9, a group of crypto users began noticing a growing price difference between cryptocurrencies listed on crypto exchanges in the United States and their global spot prices, with many calling it the “depeg” of cryptocurrencies.
Bitcoin is currently trading at $27,536 on the exchange against the US Dollar, which is roughly 8.5% lower than the global spot USD price of $30,106 at the time of writing.
Other cryptocurrencies also trade at a discount to the US dollar. Ethereum prices are almost $200 cheaper on Binance.US and are trading at $1,695 at the time of writing. Some stable coins like USDT were also trading on the exchange with Tether at $0.915.
Wow! Bitcoin on Binance US is trading at $26,970 vs $30,300 (actual price)
Ethereum is $200 lower than normal
USDT is 0.889 cents pic.twitter.com/LgKeMEDZQv
— borovik.eth (@3orovik) 9 July 2023
Although crypto rebates sound attractive to an arbitrageur, the reality is that most investors will not be able to take advantage of them.
The discount only applies when cryptocurrencies are traded against fiat USD on a crypto exchange.
The problem is that Binance.US users have not been able to deposit new USD on the platform since June 9th, when it was suspended. Basically, this means that the subsidized cryptocurrency can only be purchased with any USD that was already in the account before the suspension occurred.
Concerns that Binance.US will soon stop USD withdrawals have prompted some users to trade their cryptocurrencies below market value to exit their USD positions.
according to a E-mail For customers from Binance.US, as broadcast on Twitter, is the last day for withdrawals of $20.
Connected: Bitcoin price on Binance.US crypto exchange with a premium of $700
A similar situation occurred with the Australian dollar on the Australian arm of Binance in late May, when the company’s third-party payment provider ramped up fiat on and off.
The BTC price on Binance declined by 20% against global spot prices when trading against the Australian Dollar.
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