Individual wallets holding 1 bitcoin hit all-time high as BTC price remains at $30,000

Good morning Here’s what happens:

Prices: Bitcoin continues to show clear signs of decentralization even as it faces liquidity issues.

Insights: A lack of dollar liquidity means some strange things are happening on Binance.US.

Bitcoin decentralization is alive and well as it holds the $30,000 mark

Bitcoin opens Tuesday’s trading day in Asia at $30,366, claiming a strong presence above $30,000.

According to data from Glassnode, the number of wallets containing at least one bitcoin has reached an all-time high of 1,008,737 million.

This increased proliferation of wallets with at least one bitcoin suggests increasing decentralization of the network. Meanwhile, data from Glassnode shows whale numbers are also declining.

All of this is happening as the popularity of ordinal numbers increases the load on the Bitcoin network.

Bitcoin’s next big moves are likely to come later this week when jobless claims and CPI data are released. Both will show the success of the Fed’s efforts to curb inflation – data for traders to consider as they make their next moves.

Binance.US has a problem with free money

Binance.US was always intended to be a fiat pipeline for US citizens wishing to use Binance. But since last month it has struggled to fulfill that role with its fiat pipelines suspended.

With no fiat liquidity, this has put the stock market in a strange position. Bitcoin is trading at a 9% discount, as is Tether (USDT); The world’s largest dollar-pegged stablecoin is trading at a discount of nearly 9 cents to other exchanges.

The exchange’s market depth, or traders’ ability to fill large orders at stable prices, has also deteriorated significantly in recent months, favoring wild price movements.

Data from research group Kaiko shows that market depth on Binance.US has collapsed and liquidity available on the platform has dropped by over 60% in June.

Adrian Wang, founder and CEO of digital asset management company Metalpha, cites the upcoming July 20 payout deadline as the reason for the unpegging.

“As more days approach that deadline, less liquidity and fewer banks exchanging fiat currencies mean this de-pegging may continue,” he told CoinDesk.

A simple trade right now is to buy USDT at a discount on Binance.US and place it elsewhere to trade. But it just can’t be about fiat ramps – the be-all and end-all of most Binance.US users.

“I think there might be some arbitrage opportunities for institutions or market makers, but retailers probably wouldn’t have the risk tolerance or understanding,” Nick Ruck, COO of DeFi protocol ContentFi Labs, said in a note to CoinDesk.

Surely many have done this to enjoy free money; According to data from Nansen.ai, the exchange recorded a negative $16.2 million net inflow over the past week.

But the question is, why didn’t this resolve itself? Why hasn’t it lowered the total value of Tether, nor has it rebounded the value of USDT on Binance.US?

“Compared to USDT’s total circulation, the sales volume is not enough to ultimately impact the overall market price,” Tony Ling, co-founder of data portal NFTGo and partner at Bizantine Capital, told CoinDesk. “There have been serious price deviations before, but in the end nothing happened.”

For now, enjoy the free money.

This article was written and edited by CoinDesk journalists for the sole purpose of providing the reader with accurate information. If you click on a Glassnode link, CoinDesk may receive a commission. Please see our Ethics Policy for more information.

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Disclaimer: This article was written and edited by CoinDesk journalists for the sole purpose of providing the reader with accurate information. If you click on a Glassnode link, CoinDesk may receive a commission. Please see our Ethics Policy for more information.

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