Bitcoin (BTC) is currently being sold at a significant discount on the Binance.US crypto exchange, offering a better rate compared to global spot prices. This price discrepancy, which has been termed a “depeg” of cryptocurrencies, was first noticed by crypto users on July 9. On Binance.US, Bitcoin is trading at $27,536 against the U.S. dollar, representing an 8.5% discount from the global spot USD prices of $30,106.
Not only Bitcoin but other cryptocurrencies are also trading at a discount on Binance.US in U.S. dollar terms. For instance, Ethereum is around $200 cheaper, being traded at $1,695. Even stablecoins like USDT are trading below their pegs, with Tether being priced at $0.915 on the exchange.
While these discounted prices may seem attractive to arbitragers, the reality is that most investors won’t be able to take advantage of them. This is because the discount is only applicable when trading a cryptocurrency against fiat USD on the crypto exchange. The problem lies in the fact that Binance.US users have not been able to deposit new USD into the platform since June 9, when such deposits were suspended. Hence, the discounted cryptocurrencies can only be purchased using any USD that was already present in the user’s account before the suspension.
However, concerns have arisen that Binance.US may soon halt USD withdrawals as well. As a result, some users are trading their cryptocurrencies at lower market values in order to exit their positions in USD. According to an email from Binance.US to customers, which has been shared on Twitter, the last day for USD withdrawals is set to be July 20.
This situation with discounted cryptocurrencies is not unique to Binance.US. In late May, a similar occurrence took place with the Australian dollar at Binance’s Australian branch. The company’s third-party payments provider suspended fiat on and off ramps, leading to a 20% decrease in the price of BTC compared to global spot prices when traded against the Australian dollar.
It’s important to note that these disruptions and discounts in crypto prices highlight the risks and challenges associated with cryptocurrency trading. As the market continues to evolve and regulations become more stringent, investors need to be vigilant and aware of the potential risks involved.
In conclusion, Bitcoin and other cryptocurrencies are currently being sold at a discount on Binance.US, offering a better rate compared to global spot prices. However, due to restrictions on deposits and potential halt in USD withdrawals, only a select group of investors can take advantage of these discounts. The situation mirrors a previous incident in Binance’s Australian branch. As the cryptocurrency market evolves, investors must stay informed about the risks associated with trading cryptocurrencies.