Bitcoin (BTC) is selling at a discount of almost $3,000 on Binance.US, offering a significantly better price than global spot prices — but there’s just one catch.
On July 9, numerous crypto users noticed a widening price discrepancy between cryptocurrencies listed on the United States Crypto Exchange and their global spot prices, with many calling this the “depeg” of cryptocurrencies.
The BTC/USD charts on Binance.US show a current price of $27,536. Source: Binance.US
Bitcoin is currently trading at $27,536 against the US dollar on exchanges, a discount of approximately 8.5% to global spot USD prices of $30,106 at the time of writing.
Other cryptocurrencies also trade at a discount in US dollars. Ethereum prices are around $200 cheaper on Binance.US, trading for $1,695 at the time of writing. Some stablecoins like USDT were also trading below their minimum prices, while Tether was trading at $0.915 on the exchange.
While the crypto rebates may seem tempting to arbitrageurs, the reality is that most investors will not be able to take advantage of them.
This is because the discount only applies when a cryptocurrency is traded against fiat USD on the crypto exchange.
The problem is that Binance.US users have not been able to deposit new US dollars into the platform since the lockdown on June 9th. In effect, this means that the discounted cryptocurrencies can only be bought with USD that were already in the account before the ban.
Concerns that Binance.US will soon stop USD withdrawals have also led some users to trade their cryptocurrencies below market value to liquidate their USD positions.
According to an email from Binance.US to customers circulated on Twitter, the last day for USD withdrawals is July 20th.
Related: Bitcoin is priced at a $700 premium on crypto exchange Binance.US
In late May, a similar situation related to the Australian dollar occurred at the Binance Australia branch when the company’s third-party payment provider closed fiat entry and exit.
The price of BTC on Binance fell 20% compared to global spot prices when trading against the Australian dollar.
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