Attractive Bitcoin, Ethereum Discounts on Binance.US, But Not for Everyone

Bitcoin and Ethereum are trading at attractive discounts on Binance.US, but not all users will be able to take advantage of this.

Compared to global spot markets, bitcoin is trading around $27,500 on Binance.US. Ethereum, on the other hand, was trading at $1,700 – a discount of $200, offering market participants a better price than other crypto exchanges.

waiver concerns

Crypto users took to Twitter to address the situation relaxed me It is a “depeg” of cryptocurrencies, a term denoting a significant divergence from global spot prices.

But taking advantage of the disparity isn’t easy because the discounted cryptocurrency can only be bought through USD holdings. However, Binance.US suspended USD deposits to the platform on June 9th. This essentially only leaves users who have USD already sitting on the exchange to take advantage of the arbitrage opportunity.

Another example of a price discrepancy on the Binance platform was observed in late May when the Australian branch of the crypto giant saw a significant drop in the price of bitcoin compared to global spot prices.

The incident came to light after the company’s third-party payment provider terminated fiat on- and off-ramps. Following this, the price of bitcoin on Binance’s Australian platform declined by 20% against the AUD relative to global prices.

Tether CTO Chime

Apart from Bitcoin and Ethereum, the world’s largest stablecoin – USDT – was also trading below $1 on the exchange, fueling FUD in the community. In an effort to ease concerns, the stablecoin issuer’s CTO, Paolo Ardoino, Explained Given that Binance.US is embroiled in legal challenges, the lack of many market makers willing to arbitrate could be behind this disparity.

The executive further said that Tether is in charge of its primary market, while intermediaries and market making professionals are responsible for the secondary markets, ie crypto exchanges.

“BTC/USD trades at 27600 there (30.1k on other exchanges). There seems to be a typical spread of ~8%. Does this mean that globally BTC is also undervalued? no way. The same logic applies. Do the math on the spread for BTC/USD and USDT/USD and you get roughly the same percentage.”