According to digital assets data provider Kaiko, Bitcoin traded at a slight discount on Binance.US during the June 9 trading hours. The drop followed the exchange’s decision to suspend fiat trading channels beginning June 13.
#BTC now trades at a slight discount on https://t.co/pup2WYms9R after news broke that the exchange may halt USD withdrawals 🚨 pic.twitter.com/ZyXKGhXTha
— Kaiko (@KaikoData) June 9, 2023
This development starkly contrasts the two days preceding it, during which the cryptocurrency traded at a significant premium on the same exchange. Kaiko further revealed that the trading price of Bitcoin on Binance’s American arm was slightly lower than on Kraken and Coinbase.
However, Bitcoin had returned to trading at a premium on Binance.US. The BTC/USD pair was priced at $25,836, which was $126 higher than the price on Coinbase, according to TradingView.
U.S. SEC pushes legal action
The legal action taken by the U.S. Securities and Exchange Commission (SEC) against Binance.US has had a significant impact on the broader crypto market. The action particularly affects the dynamics of the BTC/USD trading pair.
The SEC has taken to using extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the American digital asset industry. https://t.co/AZwoBOgsqS and our business partners have not been spared in the use of these tactics, which has created… pic.twitter.com/rlIe6swIoY
— Binance.US 🇺🇸 (@BinanceUS) June 9, 2023
Following the SEC’s attempt to freeze Binance.US assets, Bitcoin began trading at an unusually high premium on the exchange. This was primarily due to reduced liquidity on the platform as nervous investors started withdrawing their assets.
12 hours after @BinanceUS suspended USD deposits and notified customers that they are preparing to pause fiat withdrawals, the exchange has seen a negative netflow of $25.4M over the past 24 hours and $1.4M in the past hour. This doesn’t include Bitcoin.https://t.co/yzYBwYXTiA
— Nansen 🧭 (@nansen_ai) June 9, 2023
During the prolonged volatility phase in May, an accumulation phase began, causing top exchanges to lose many Bitcoin tokens. According to the Santiment graph, Bitcoin supply on exchanges has steadily decreased over the past month, with recent events in the last week contributing to a more pronounced decline.
As of the time of publication, Bitcoin was priced at $25,748.19, experiencing a 3.15 percent decrease in the last 24 hours. Since the beginning of the week, it has seen a nearly 6 percent plunge in value.
Suspended services
Bitcoin and other cryptocurrency holders are left wondering about the potential outcome following the recent legal action against Binance.US. These developments in the U.S. have many people speculating about how market movements could impact Bitcoin’s price.
However, recent data from Glassnode has provided insights into the situation. The influence of the U.S. market on Bitcoin has decreased.
Moreover, there is a noticeable divergence when comparing year-over-year changes in Bitcoin supply across different regions. The strong dominance of U.S. entities witnessed during 2020-2021 has reversed, with U.S. supply dominance declining by 11 percent since mid-2022.
In contrast, European markets have maintained a relatively neutral stance over the past year, while Asian trading hours have seen a significant increase in observed supply dominance.
With Binance.US recently announcing the impact of SEC’s crackdown and the suspension of certain services, Bitcoin holders in the U.S. can no longer directly use their bank accounts to withdraw or deposit funds.
Additionally, Binance.US notified customers that its banking partners are getting ready to temporarily halt withdrawal channels for USD starting from June 13, 2023. This action can further reduce the dominance of Bitcoin supply in the region and weaken its influence on the market.
A recent outflow of funds from Bitcoin indicates that more holders are withdrawing their holdings. This may be due to growing fear, uncertainty, and doubt. On June 8, there was a negative flow of over 26,000 Bitcoin as withdrawals surged. However, as of now, there is a positive flow of over 3,000 Bitcoin.
Additionally, there have been minimal gains in the daily chart of Bitcoin. Most recent reports showed Bitcoin traded with a profit of less than one percent at around $26,700. This slight price increase is causing the ongoing bear trend to weaken, as indicated by the Moving Average Convergence Divergence indicator.
