The leading cryptocurrency Bitcoin is currently experiencing a trading discount of nearly $1,000 on the Binance.US crypto exchange, raising eyebrows in the market.
This price discrepancy has been observed since June 22 by research firm Kaiko. Enforcement action against Binance.US is impacting cryptocurrency prices on the exchange.
All tokens available for trading with dollars on Binance.US are experiencing discounts compared to other exchanges. According to data from Kaiko, the discounts range from 2% to 5% for trading pairs involving Bitcoin, Ether, and stablecoins USDT and USDC.
This phenomenon coincides with Binance.US's announcement hinting at a potential discontinuation of USD withdrawals.
The U.S.-based crypto exchange has informed its customers that it has resolved the issues related to U.S. dollar withdrawals by working with its banking partners. In a July 22 announcement, the exchange expects the withdrawal process to return to its normal five-business-day turnaround.
However, it warned customers that the relief may not be permanent, given the ongoing regulatory battle with the SEC. As concerns over USD withdrawals mount, some users are opting to sell their Bitcoin at a discounted price to access their funds.
This resulted in the BTC/USD pair on Binance.US trading at approximately a $1,000 discount compared to other cryptocurrency exchanges.
Bitcoin, ranked first by CoinMarketCap, has a market capitalization of $589 billion. In the past 24 hours, Bitcoin has recorded a trading volume of $14.5 billion and a slight increase of less than 0.50%.
Despite the current situation, its current price is stable at $30,384. Its circulating supply is marked at 19,413,237 BTC coins, just slightly under its maximum supply of 21,000,000 BTC coins.
BTC/USD encounters strong resistance at the $31,000 level on the daily chart, marked by a double-top pattern. The presence of neutral candles like a doji and spinning top, along with this resistance, suggests a decrease in bullish sentiment and buyer exhaustion. This might hint that there will be a potential minor price correction for Bitcoin.
It's also important to mention that there is immediate support near $29,600. Further downward movement could occur if this limit is breached, with the next significant support at $28,250. That would be aligned with the 50-day exponential moving average.
Making way to Wall Street
While Binance US, currently entangled in a legal dispute with the SEC, continues to face regulatory challenges, the trading discount on its platform and concerns over USD withdrawals have had a tangible impact on the price of Bitcoin.
Binance.US has advised users to consider stablecoins or convert their USD to continue trading cryptocurrencies, anticipating that its banking partners may halt USD withdrawals in the future.
Despite the ongoing regulatory scrutiny, the traditional finance industry, known as TradFi, is making its move into the crypto space.
It is also believed that Wall Street eyes this emerging market. Experts speculate that regulatory clarity will pave the way for financial institutions to enter and potentially gain market share.
"The banks and the financial institutions with capital are always years behind by design because they're risk averse," David Schwed, COO of Halborn, said to Decrypt. "And then once there is any sort of clarity, whether it's coming from the SEC or court systems, they're just gonna jump on that opportunity and create."
However, crypto will likely maintain its anti-establishment actors, though their numbers may shrink or shift toward privacy coins as regulations intensify.