Catch a Discount: Bitcoin Trades at $3K Markdown on Binance.US, but Conditions Apply

Cryptocurrency enthusiasts recently noticed a substantial price discrepancy on Binance.US, where Bitcoin is being sold at nearly a $3,000 discount compared to global spot prices. This discrepancy has sparked discussions of a potential “depeg” of cryptocurrencies.

As of the time of writing, Bitcoin is trading at $27,536 on Binance.US, marking an approximately 8.5% discount from the global spot price of $30,106 against the U.S. dollar. Ethereum and certain stablecoins, such as USDT, are also being traded at a discount on the platform.

While the discounted prices may seem attractive for arbitrage opportunities, the reality is that most investors will be unable to take advantage of them due to certain limitations. The discounts are only applicable when cryptocurrencies are traded against fiat USD on Binance.US.

The primary issue lies in the fact that Binance.US suspended new USD deposits on June 9, meaning that only existing USD funds in user accounts prior to the suspension can be utilized to purchase the discounted cryptocurrencies. Furthermore, concerns have arisen that Binance.US may soon halt USD withdrawals, leading some users to trade their cryptocurrencies at below-market prices to exit their positions in USD.

According to a circulating email from Binance.US to its customers, the final day for USD withdrawals will be on July 20. This situation mirrors a similar event that occurred in late May at Binance’s Australian branch when a third-party payments provider ceased fiat on-ramps and off-ramps. Consequently, the price of BTC on Binance.AU dropped by 20% compared to global spot prices when traded against the Australian dollar.

While the discounted prices on Binance.US may entice some traders, the restrictions and imminent USD withdrawal halt make it challenging for most investors to take advantage of these opportunities.

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