Bitcoin is trading at a $2,000 premium on Binance US, an exchange controlled by Changpeng Zhao and Binance Global, according to sources as of June 6.
Accordingly screenshots As widely circulated on Twitter, BTC is said to have been trading at $28,505 at one point, a price level roughly $2,000 above the global BTC average of around $26,500 at the time.
Bitcoin trading with a $2,000 premium on Binance US
From the price charts, Bitcoin remains volatile even at spot rates. Less than 24 hours after crashing as low as $25,900 on June 5, the coin recouped losses on June 6.
Bitcoin price on June 7| Source: BTCUSDT on Binance, TradingView
Yesterday, the price of BTC surged, reaching levels as high as $27,000. This move higher contradicted the bearish forecasts analysts had previously given for June 5th. Additionally, this positive price action helped allay concerns that the SEC lawsuit against Binance would hurt BTC’s value.
The Bitcoin and cryptocurrency price drop on June 5 coincided with accusations from the US regulator. This listed 13 allegations against Binance, including allegations that the exchange, along with Binance US, allegedly enabled US citizens to trade illegally in a wide range of cryptocurrencies.
In addition, the SEC emphasized that Binance and Binance US are unregistered trading platforms that continue to offer “multiple unregistered offerings and investment plans” aimed at “defrauding equity, retail and institutional investors for alleged monitoring and control of manipulative trading.” “.
On-chain data from Nansen was released in response to the SEC lawsuit shows that investors continued to divest billions worth of crypto assets from Binance Global and Binance US.
The analytics platform notes that over $3 billion in assets from multiple chains have been drained from Binance. Of that, over $1.3 billion came from Ethereum.
Intervention increases demand for bitcoin
Meanwhile, Binance.US has shut down its over-the-counter (OTC) trading platform and reduced the number of supported trading pairs.
The Notice Binance US changes affect about 90 pairs of USDT, BTC and BUSD pairs. It is also unclear when Binance US will resume its over-the-counter trading services.
Additionally, Binance US has reduced trading and conversion options to USDC, USDT, Bitcoin, Ethereum and some of the major crypto assets including Cardano’s ADA.
While there is a limit on what assets existing customers can exchange into, Binance US has capped the maximum USD buy, sell, and exchange options at $10,000.
The suspension of the Binance US OTC platform and caps on USD exchanges and assets may explain why bitcoin is a coveted asset and at a $2,000 premium in the United States for customers who used Binance US is traded.
The SEC and the Commodity Futures Trading Commission (CFTC) have previously stated that Bitcoin is a commodity.
Featured image by Canva, chart by TradingView
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