Bitcoin And Other Crypto At Binance US Again Discount, Here's Why!

The price of cryptocurrencies in BinanceUS is lower than others. (Photo; Doc. Criptokio)

JAKARTA - Bitcoin (BTC) and other digital assets, including Tether (USDT), are currently trading with an 8 percent discount on Binance.US, the crypto exchange platform, due to liquidity problems that occurred after a lawsuit filed by the US Securities and Exchange Commission (SEC).

Data from Binance.US shows that the price of Bitcoin is currently trading at around US$27,705 (Rp420 million), about US$3,000 (Rp45 million) lower than prices on other exchange platforms such as Coinbase, Kraken, BitStamp, and others. These discounts also impact other digital assets such as Ethereum (ETH), USDT, Solana (SOL), and others, as seen from Coinecko data.

The problems faced by Binance.US began after the SEC filed a lawsuit against the platform on June 5. Since then, Binance.US market depth has fallen by almost 80 percent as many market participants left the platform.

As a result of this legal problem, Binance.US suspended its US dollar deposit after its banking partners suspended their payment channels and switched to crypto-specific platforms. This decline resulted in Binance.US' market share dropping to less than 1 percent, as reported by blockchain analytics firm Kaiko.

According to a Cryptoslate report, since then, Binance.US has experienced high volatility with trading pairs in US dollars, such as BTC, which jumped to 138,000 US dollars (equivalent to Rp2 billion) on June 21. Previously, Bitcoin was traded at a 3 percent discount in May.

However, assets paired with stablecoins like USDT and USDC are trading at a price that is more stable and in accordance with the dollar benchmark, according to data from Coingecko.

CTO Tether, Paolo Ardoino, gave his response to this situation. He emphasized that price deviations only occurred in Binance.US, while in Binance.com, USDT traded 1 basis point above the US dollar. Ardoino also highlighted the legal challenges faced by Binance.US as the reason why many market players are reluctant to do arbitration at this time.

"Tether is responsible for its main market, while the secondary market on crypto exchanges relies on the role of arbitrage actors and market makers," added Ardoino. This condition shows that Binance.US still faces various challenges affecting liquidity and the price of digital assets traded on the platform.