Crypto currency Bitcoin is eyeing a return to $30,000 — but traders on Binance.US have been shown a very different price Binance’s US branch has come under criticism from market watchdogs on both sides of the aisle. It now looks to be having difficulty keeping some of its largest bitcoin (BTC) order books working smoothly.
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Cryptocurrency exchange Binance
Binance Late Tuesday evening, the US listed the
price of bitcoin at more over $138,000 for its tether (USDT) market – about 410%
more than current prices posted elsewhere
According to TradingView data analysed by Blockworks, the unexpected increase lasted barely a few seconds. Binance.According to the US website, 62.22 BTC changed hands over that time period, which is around $1.8 million at current pricing. The sharp increase shows that someone in the market purchased that much in bitcoin using USDT.
If this is the case, the lack of liquidity meant
that all available sale orders were instantly filled at reasonable prices. With
only sky-high ‘funny bids’ to contend with, the price of bitcoin
soared to new all-time highs.
Binance
US has been contacted by Blockworks for further
information. Such situations are usually mirrored in the other manner, with
“flash crashes.” A similar occurrence occurred on Binance.US in
October 2021, when the price of bitcoin
fell 88% from $65,000 to $8,200 before immediately recovering. Binance. The
United States blamed the event on a faulty trading
algorithm. In December 2018, the price of ether dropped from $100 to $13 on
Coinbase Pro, only to rebound within minutes.
Binance, in any case. The United States has been suffering with low
liquidity for some time, owing to difficulties with its banking partners as a
result of regulatory squabbles. Last month, traders paid more than 5% premiums
on bitcoin and comparable sums on ether ETH compared to competitor platforms.
Analysts concurred that the pricing disparities were
caused by liquidity issues. Those premiums have subsequently been discontinued.
The exchange’s market depth has declined nearly 80% over the past month on
regulatory woes
US Bitcoin Price Spikes to $138K On US
Bitcoin briefly reached
$138,000 on crypto platform Binance US earlier today in a price spike on the btc/tether trading pair,
according to exchange statistics. Prices briefly reached those levels at 6:50
a.m. UTC before falling to parity with other bitcoin spot markets. Other bitcoin trading pairs traded normally
The surge seemed unlikely to be the result of a trader looking to spend roughly
450% more for bitcoin, which is now trading for just over $29,000 in European
morning hours on Wednesday.
Instead, the unusual wick
was most likely caused by insufficient liquidity for bitcoin vs tether on
Binance.US. According to market
depth statistics, a $400,000 bitcoin purchase on this trading pair may boost
prices by 2%, but the equivalent influence on the bitcoin USD trade pair requires a minimum of $842,000.
The degree of liquidity in a financial market is referred to as market depth. As a result, according to a Kaiko analysis earlier this month, Binance.US’s market depth has decreased 77% since May, implying that market makers and traders have abandoned the exchange
