As an intrinsic aspect of the ever-evolving crypto ecosystem, Bitcoin (BTC) consistently stimulates engaging narratives, particularly in the digital trading milieu. Among the recent captivating occurrences is the unique scenario unfolding on Binance.US, where Bitcoin trades at a significant markdown compared to global spot prices. However, one crucial caveat accompanies this enticing discount.
In early July 2023, many crypto enthusiasts started to discern an increasing price disparity between cryptocurrencies listed on Binance.US and their corresponding global spot prices. The crypto community quickly coined this phenomenon as a “depeg” of cryptocurrencies, a term referring to a significant divergence from the global spot prices.
At the time of observation, Bitcoin was exchanging hands at around $27,536 on Binance.US platform, representing an approximately 8.5% markdown from the global spot USD prices, which stood at $30,106.
This intriguing anomaly was not exclusive to Bitcoin. Other notable cryptocurrencies also witnessed similar price divergences in U.S. dollar terms on the Binance.US platform. Ethereum, for instance, was trading around $200 lower on Binance.US compared to global markets. Moreover, several stablecoins—cryptocurrencies designed to minimize volatility—were observed to be trading below their intended peg.
While these crypto discounts might appear as tantalizing opportunities for arbitrageurs—traders who capitalize on price discrepancies across different markets—the truth is that most investors remain unable to leverage these price differences. The discount offered by Binance.US only applies when a cryptocurrency is traded against fiat USD on their platform.
This inaccessibility arises from Binance.US’s suspension of new USD deposits since June 9, effectively restricting the acquisition of these discounted cryptocurrencies to USD already held in user accounts before the suspension. Fears of an imminent halt to USD withdrawals have pushed some users to trade their cryptocurrencies below market value to liquidate their positions in USD. Binance.US even went ahead to send out an email to customers announcing the last day for USD withdrawals to be July 20.
Interestingly, this isn’t the first instance of such a price anomaly on a Binance platform. A similar situation unfolded in late May when the Australian arm of Binance experienced a significant price drop for BTC, compared to global spot prices, following the termination of fiat on- and off-ramps by the company’s third-party payments provider. Consequently, the price of BTC on Binance plummeted 20% against the Australian dollar relative to global prices.
None of the information on this website is investment or financial advice. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website.