Over $27,500 is the current price of bitcoin on Binance.US, which is roughly $3,000 less than the global current price.
The price of cryptocurrencies listed on the US-based cryptocurrency exchange Binance.US and their global spot values differed noticeably on July 9 according to individuals who use the exchange. Many people referred to this mismatch as a “depeg” of cryptocurrencies, denoting that Binance.US prices were significantly lower than international spot prices.
For instance, Bitcoin was selling for $27,536 on Binance.US when compared to the dollar, which is a discount of about 8.5% off the time’s spot USD price of $30,106. On Binance.US, prices for other cryptocurrencies, including Ethereum, were also trading at a discount, about $200 less so than at other exchanges.
Stablecoins like USDT, which were trading below their pegs with Tether, also received the lower rates. The price of USDT on Binance.US was $0.915, which deviates from the anticipated peg.
Although arbitrage opportunities may seem enticing given the cheaper pricing, it’s crucial to be aware of the restrictions that apply to investors. Only when trading cryptocurrencies on Binance.US against USD in fiat currency are the lower pricing available.
One of the main difficulties is Binance.Since June 9, the US has prohibited new USD deposits into customer accounts. Investors can only use USD that was already in their Binance.US accounts prior to the stoppage of USD deposits to buy the discounted cryptocurrency.
Additionally, there are worries about the impending suspension of USD withdrawals from Binance.US. Due to this, some customers have tried to sell their cryptocurrency assets for less than market value in order to withdraw their funds before the deadline.
The final day for USD withdrawals will be July 20, according to an email that Binance.US has been sending to its customers and that has been shared on social media sites like Twitter. The uncertainty surrounding the availability of USD on the platform is further reinforced by this news.
Overall, the situation on Binance.US demonstrates the difficulties customers encounter when trying to profit from price differences brought on by the “depeg” phenomena. Most investors are unable to benefit from the discounted prices due to the suspension of USD deposits and anticipated withdrawal limitations. It is unclear how Binance.US will handle these problems or whether the restriction on USD deposits and withdrawals will be lifted in the future.