Bitcoin is currently available on Binance.US for a price slightly above $27,500, which is a substantial discount of almost $3,000 compared to the global spot prices. The cryptocurrency, represented by the ticker symbol BTC, has experienced a decline to around $30,133. This attractive discount on Binance.US offers a much more favorable rate than the prices seen globally.
However, there is a catch. On July 9, numerous cryptocurrency users started noticing a significant price difference between the cryptocurrencies listed on the United States crypto exchange and their corresponding global spot prices. This phenomenon has been referred to as a “depeg” of cryptocurrencies by many observers.
At present, Bitcoin is being traded at a price of $27,536 on the exchange when paired with the U.S. dollar. This represents a discount of approximately 8.5% compared to the global spot prices in USD, which stood at $30,106 at the time of writing.
Additionally, other cryptocurrencies are also available at discounted prices when measured in U.S. dollars. For instance, Ethereum is trading around $200 cheaper on Binance.US, with a current price of $1,695. Moreover, certain stablecoins like USDT were trading below their intended pegs, with Tether priced at $0.915 on the exchange.
Despite the appealing discounts on cryptocurrencies, the majority of investors will find it challenging to capitalize on them. The reason behind this is that the discount is applicable only when trading a cryptocurrency against fiat USD on the crypto exchange.
Binance’s Discount Catch
However, there is a significant obstacle. Binance.US users have been unable to deposit new USD into the platform since June 9, when such deposits were suspended. Consequently, the discounted cryptocurrencies can only be purchased using existing USD funds that were present in the account before the suspension came into effect.
Furthermore, concerns have arisen that Binance.US might soon discontinue USD withdrawals. Consequently, some users have opted to trade their cryptocurrencies at a price below the market value to facilitate their exit from positions in USD.
As per an email shared on Twitter, reportedly sent by Binance.US to its customers, the final day for USD withdrawals is set for July 20.
In late May, a comparable situation arose concerning the Australian dollar at Binance’s Australian branch. This occurred when the third-party payments provider responsible for fiat on and off ramps abruptly ceased its services. As a result, the price of BTC on Binance experienced a significant decline of 20% when traded against the Australian dollar, in contrast to the global spot prices.