- Binance.US’ latest blow sparked a BTC selloff.
- The events of the week led to a sharp drop in BTC exchange supply.
Bitcoin [BTC] traded at a slight discount on Binance.US during June 9 trading hours following the exchange’s decision to suspend fiat trading channels from June 13, according to digital asset data provider Kaiko. This was in stark contrast to the two days prior to this development when the king coin was trading at a significant premium on the same exchange.
Kaiko emphasized that the BTC trading price on the US arm of the crypto giant Binance was slightly lower than what it was trading on June 9 on competitors such as Kraken and Coinbase.
#BTC now trades at a small discount on https://t.co/pup2WYms9R after news broke that the exchange could halt USD withdrawals 🚨 pic.twitter.com/ZyXKGhXTha
— Kaiko (@KaikoData) June 9, 2023
However, at the time of publication, BTC was once again trading at a premium to Binance.US, with the BTC/USD pair priced at $25,836, $126 above Coinbase’s price, according to Trade view.
Read Bitcoin [BTC] Price Forecast 2023-24
Roller coaster ride for BTC/USD pair
The US Securities and Exchange Commission (SEC) legal action against Binance has created ripples in the broader crypto market, negatively impacting the dynamics of the highly popular BTC/USD trading pair.
Following the regulator’s attempts to freeze Binance.US assets, BTC began trading at an unusually high premium on the exchange. This was largely due to declining liquidity on the platform as jittery investors began pulling their assets out.
However, the latest blow by Binance.US, which prevented clients from trading with USD, had a different effect on the trading pair. After the exchange asked users to withdraw their dollars before the June 13 cut-off date, a selloff ensued as traders rushed to cash in their BTC. This lowered the price of the BTC/USD pair for a short period of time.
In fact, the above action clearly explained the low BTC withdrawals following the Binance.US announcement.
12 hours later @BinanceUS Suspending USD deposits and informing customers that they are preparing to pause fiat withdrawals, the exchange has seen a negative net flow of $25.4 million in the past 24 hours and $1.4 million in the past hour. This excludes Bitcoin.https://t.co/yzYBwYXTiA
— Nansen 🧭 (@nansen_ai) June 9, 2023
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The exchange offer continues to decline
May’s prolonged volatility phase was the start of an accumulation phase that led to top exchanges losing significant amounts of BTC tokens. According to the Santiment chart, there has been a steady decline in BTC supply on exchanges over the past month, with the events of the past week leading to a steeper decline.
At the time of publication, BTC was valued at $25,748.19, down 3.15% from the past 24 hours. It’s down nearly 6% in value since the start of the week.
Source: Sentiment