Bitcoin is currently available at a nearly $3,000 discount on Binance.US compared to global spot prices. However, there’s a catch that limits its accessibility to most investors. A growing price discrepancy between cryptocurrencies listed on the United States crypto exchange and their global spot prices has been observed since July 9, leading to speculations of a cryptocurrency “depeg.”
On Binance.US, Bitcoin is trading at $27,536 against the U.S. dollar, representing an approximately 8.5% discount from the global spot USD price of $30,106 at the time of writing. Other cryptocurrencies, such as Ethereum, are also trading at a lower price on Binance.US, with Ethereum priced around $200 cheaper.
Unfortunately, this discount only applies when trading cryptocurrencies against fiat USD on the exchange. The problem lies in the fact that Binance.US users have been unable to deposit new USD into the platform since June 9 when it was suspended. As a result, the discounted cryptocurrencies can only be purchased using existing USD balances before the suspension took effect.
Concerns have arisen that Binance.US may soon halt USD withdrawals, prompting some users to trade their cryptocurrencies below market value to exit their positions in USD. An email from Binance.US to customers, circulated on Twitter, stated that the last day for USD withdrawals will be July 20.
This situation resembles a previous incident that occurred in the Australian branch of Binance, where the company’s third-party payments provider ceased fiat on-ramps and off-ramps. As a result, the price of Bitcoin on Binance fell by 20% compared to global spot prices when traded against the Australian dollar.
While the discounted prices appear attractive for arbitrage opportunities, the limited accessibility and potential withdrawal restrictions hinder most investors from taking full advantage of them. It remains to be seen how the situation will unfold and whether alternative solutions will be provided by Binance.US or other platforms.
Overall, the current discounted prices on Binance.US offer a glimpse of market discrepancies, highlighting the challenges faced by users due to restricted fiat deposit and withdrawal options.