- Investors rush to take advantage of a price difference, known as an arbitrage opportunity.
- Binance.US will stop processing U.S. dollar withdrawals on July 20.
There is a discount of around $2600 and $150, respectively, on the global spot price of Bitcoin and Ethereum, which are now trading near $27,500 and $1700 on the Binance U.S exchange.
Following the US SEC lawsuit and the suspension of USD deposits and withdrawals, USDT has remained depegged to the USD at $0.91. On the cryptocurrency exchange, there are other altcoins that are selling at a discount.
Massive Arbitrage Opportunity
On Binance U.S, Bitcoin and Ethereum both rose by 2%, as investors rush to take advantage of a price difference, known as an arbitrage opportunity. The only individuals who can take advantage of this supposedly improved arbitrage opportunity are those who already have USD on Binance U.S. For over a month, US deposits have been unavailable. Binance.US will stop processing U.S. dollar withdrawals on July 20.
The future of Binance in the U.S has been called into question by the cryptocurrency community, as several top executives leave the cryptocurrency exchange.
Veteran trader Peter Brandt also took notice of the USDT depeg on Binance.US, accusing Binance CEO CZ and calling it the “scam of the decade.” He said that the same exchange had allowed to sell Bitcoin for $8,000 while the cryptocurrency was selling elsewhere for $60,000. According to him, CZ should be questioned by the community about this.
In addition, investors’ continued holdings caused balances on exchanges to dwindle, causing liquidity concerns in the crypto market. Binance and Coinbase, two of the largest global cryptocurrency exchanges, are among those using a variety of methods and promotions to boost market liquidity.
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