Kaiko, a research firm, has highlighted a noteworthy observation regarding Bitcoin’s trading price on the Binance.US crypto exchange. In a recent tweet, Kaiko revealed that Bitcoin continues to trade at a nearly $1,000 discount on Binance.US compared to other exchanges. This price disparity has persisted since June 22, according to a chart shared by Kaiko.
The discount in the BTC/USD pair on Binance.US coincides with an announcement made by the exchange on June 22. Binance.US hinted that it might discontinue USD withdrawals in the near future and advised users to utilize, withdraw, or convert their USD to stablecoins for crypto-to-crypto trading purposes. While USD withdrawals are currently operational, the exchange anticipated that its banking partners may halt USD withdrawals soon.
The possibility of discontinued USD withdrawals has led some clients of Binance.US to sell their Bitcoin at a discount in order to withdraw their funds in USD. Consequently, the BTC/USD price on Binance.US has been trading at a discount of approximately $1,000 compared to other crypto exchanges.
It is important to note that Binance is currently embroiled in a legal dispute with the United States Securities and Exchange Commission (SEC). As a result, the exchange temporarily suspended USD deposits on June 9 and informed users about the impending suspension of fiat withdrawal channels. While the suspension was expected to occur as early as June 13, it has not been implemented yet.
Coinciding with these developments, the price of BTC on Binance.US experienced a sudden surge, reaching as high as $138,000 at one point during the previous week. This price fluctuation could potentially be attributed to the declining market depth of the crypto exchange. Kaiko’s research indicates that Binance.US has witnessed a decline in market depth since May, suggesting that market makers and traders have abandoned the exchange.
As a result, Binance.US’s market share among U.S. consumers has dwindled, dropping from 8% at the beginning of the year to a mere 1.5% currently. These factors contribute to the notable price discrepancy observed for Bitcoin on Binance.US compared to other exchanges available to U.S. users.
At the time of writing, Bitcoin was trading at $30,508. The situation on Binance.US continues to raise concerns among traders and market observers, highlighting the ongoing challenges faced by the exchange amidst its legal battle with the SEC. It remains to be seen how Binance.US will address the issues surrounding USD withdrawals and regain the trust of its users in the evolving cryptocurrency landscape.