Bitcoin is experiencing a substantial price drop on the Australian branch of the Binance crypto exchange. Reports indicate that the leading cryptocurrency has plummeted by as much as 21% when traded against the Australian dollar.
This sudden decline has prompted traders to scramble and cash out their crypto holdings into Australian dollars before the imminent closure of local bank withdrawals.
The trouble began on May 18 when Binance Australia announced the suspension of its Australian dollar services following a decision made by its third-party payments provider.
Immediate repercussions were seen as deposits via bank transfer came to a halt. However, PayID service withdrawals are still permitted until June 1 at 5 pm local time.
Concerns are mounting among Australian clients as the exchange has warned that any remaining Australian dollars on the platform after May 31 will be automatically converted into USDT, further fueling the rush to cash out.
Reduced Liquidity In Australian Dollar Pairs Cited As Cause By Binance
Binance has attributed the trading discounts of Bitcoin and other digital assets on its Australian platform to reduced liquidity in Australian dollar pairs.
In a statement, a spokesperson for the exchange explained that the anticipation of the platform’s AUD withdrawal services suspension, referred to as the “off-ramp closure,” has prompted users to withdraw their AUD holdings, resulting in reduced liquidity and impacting prices.
As a consequence of the impending closure, Binance Australia will be delisting the remaining AUD pairs. However, the exchange remains committed to securing additional fiat relationships to serve its users better.
Australian crypto traders are currently seizing the opportunity presented by the massive arbitrage available from the price discount.
Data from CryptoCompare reveals that Bitcoin is trading at AUD 34,250 (USD $22,345) on Binance Australia, significantly lower than its counterparts on IndependentReserve, Luno, and Kraken, where it is being exchanged for over AUD 42,000 (USD $27,401).
This pattern is also evident with other digital assets like Ethereum, which is trading at AUD 2,375 on Binance Australia, compared to over AUD 2,900 on rival exchanges.
However, the discount in prices has created a frenzy within the Australian crypto community, as traders scramble to take advantage of the unique opportunity before it disappears.
While Binance Australia’s decision has caused temporary disruptions, the future remains uncertain as the crypto industry continually adapts to new challenges and opportunities.
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