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Bitcoin (BTC) is selling at a nearly $3,000 discount on Binance.US, offering a much better rate than global spot prices – but there’s only one problem.
On July 9, a group of crypto users began to notice a growing price discrepancy between cryptocurrencies listed on a United States crypto exchange and their global spot prices, with many calling it the “dep” of cryptocurrencies.
Bitcoin is currently trading at $27,536 on the exchange against the US Dollar, which is roughly an 8.5% discount to the global spot USD price of $30,106 at the time of writing.
Other cryptocurrencies are also trading at a discount to the US dollar. Ethereum prices are about $200 cheaper on Binance.US, trading at $1,695 at the time of writing. Some stable coins like USDT were also trading on the exchange with Tether at $0.915.
Wow! Bitcoin is trading at $26,970 on Binance US while it is at $30,300 (actual price)
Ethereum is $200 less than normal
USDT is at 0.889 cents pic.twitter.com/LgKeMEDZQv
— borovik.eth (@3orovik) 9 July 2023
However, while crypto rebates sound attractive to an intermediary, the reality is that most investors will not be able to take advantage of them.
This is because the exemption only applies when cryptocurrencies are traded against fiat USD on a crypto exchange.
The problem is, Binance.US users have not been able to deposit new USD into the platform since June 9th, when it was suspended. Effectively, this means that the discounted cryptocurrency can only be purchased with any USD held in the account prior to the suspension.
Concerns that Binance.US will soon halt USD withdrawals have prompted some users to trade their cryptocurrencies below market value to exit their positions in USD.
according to a E-mail For customers from Binance.US, the deadline for USD withdrawals will be July 20, as per the tweet.
Connected: Bitcoin price at $700 premium on Binance.US crypto exchange
At the end of May, a similar situation involving the Australian dollar arose at the Australian branch of Binance when the company’s third-party payment provider ramped in and out of fiat.
The BTC price on Binance declined by 20% against global spot prices when trading against the Australian Dollar.
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