{"id":120299,"date":"2023-07-10T12:07:06","date_gmt":"2023-07-10T12:07:06","guid":{"rendered":"https:\/\/dripp.zone\/news\/us-dollar-shortage-drives-down-bitcoin-ether-prices-on-binance-us-crypto-news\/"},"modified":"2023-07-10T12:07:09","modified_gmt":"2023-07-10T12:07:09","slug":"us-dollar-shortage-drives-down-bitcoin-ether-prices-on-binance-us-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/us-dollar-shortage-drives-down-bitcoin-ether-prices-on-binance-us-crypto-news\/","title":{"rendered":"US dollar shortage drives down bitcoin, ether prices on Binance.US\n &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div>\n<p>The US dollar has become expensive on Binance.US since it lost its banking partners last month, with fiat pairs for cryptocurrencies trading at nearly 8% discount.<\/p>\n<p>In effect, the US dollar has depegged from the stablecoins \u2014 the opposite of what usually wracks crypto nerves. <\/p>\n<p>Liquidity lower than demand has apparently pushed USD prices higher on Binance.US.  One US dollar fetches about 0.93 of a dollar-pegged stablecoin like tether (<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blockworks.co\/price\/usdt\">usdt<\/a>) or USDC. <\/p>\n<p>That means it would cost 1.078 USDT ($1.078) for a whole US dollar on Binance.US right now.  US dollar values \u200b\u200bbegan rising around June 20 \u2014 after fiat deposits and withdrawals were shut down.<\/p>\n<p>Over at Coinbase, the US dollar trades at a cool one whole stablecoin.  Top stablecoins have not varied greatly from their pegs on any other platform, at least not <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blockworks.co\/news\/circle-usdc-tether-competition\">since Circle dropped to $0.94<\/a> in March, as the brief US <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blockworks.co\/news\/circle-svb-biggest-client\">banking crisis hit Silicon Valley Bank<\/a>,<\/p>\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-flourish wp-block-embed-flourish\">\n<p>\n<iframe loading=\"lazy\" src=\"https:\/\/flo.uri.sh\/visualisation\/14394547\/embed#?secret=8u6CAgRmra\" width=\"100%\" height=\"575\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen=\"\"><\/iframe>\n<\/p><figcaption class=\"wp-element-caption\"><em>One USDT is still worth one USDC<\/em> <em>on Binance.US<\/em><\/figcaption><\/figure>\n<p>So, it&#8217;s clear that US dollars have become popular on Binance.US after it <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blockworks.co\/news\/binance-culls-usdt-trading-pairs\">halted over-the-counter trading<\/a> and suspended US dollar deposits and withdrawals in early June.<\/p>\n<p>With the dollar trading at a premium, Binance US crypto prices are all out of whack.<\/p>\n<p>Buying bitcoin (<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blockworks.co\/price\/btc\">BTC<\/a>) with USD?  You&#8217;ll pay just $27,900 for a whole one, but if you&#8217;re buying with tether, you&#8217;ll fork out more than 30,800 USDT \u2014 the same price reflected across crypto markets. <\/p>\n<p>Similar discrepancies appear in Binance.US&#8217;s dollar markets, including those for ether (<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blockworks.co\/price\/eth\">ETH<\/a>Cardano (<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blockworks.co\/price\/ada\">ADA<\/a>polygon (<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blockworks.co\/price\/matic\">Matic<\/a>) and dogecoin (<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blockworks.co\/price\/doge\">USD<\/a>, <\/p>\n<p>CoinGecko <a rel=\"nofollow noopener\" target=\"_blank\" node=\"[object Object]\" href=\"https:\/\/www.coingecko.com\/en\/exchanges\/binance_us\">reports<\/a> many Binance.US dollar markets are much shallower than their stablecoin counterparts. <\/p>\n<ul>\n<li>Its BTC-USDT market shows 2% depth either way is around $700,000.<\/li>\n<li>That means a $700,000 trade either way would move prices by 2%. <\/li>\n<li>The BTC-USD pair&#8217;s depth is $190,000 in the positive and just $90,000 in the negative.<\/li>\n<\/ul>\n<p>About $2 million in BTC-USD volume has been traded on Binance.US over the past day, and about $1.6 million in USD-USDT.  A Binance US spokesperson did not immediately return a request for comment. <\/p>\n<h2 class=\"wp-block-heading\" id=\"no-ways-to-arbitrage-us-dollar-on-binanceus\">No way to arbitrage US dollar on Binance.US<\/h2>\n<p>Binance.US initially warned it could halt all USD trading pairs June 13, pending a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blockworks.co\/news\/binance-sec-asset-freeze\">potential asset freeze<\/a> requested by US regulators. <\/p>\n<p>Any USD balances were to be converted to stablecoins after June 15. Neither outcome came to pass after striking a deal with the SEC.<\/p>\n<p>Price differences like these normally present opportunities for arbitrage \u2014 exploiting market variances for profit. <\/p>\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-flourish wp-block-embed-flourish\">\n<p>\n<iframe loading=\"lazy\" src=\"https:\/\/flo.uri.sh\/visualisation\/14394915\/embed#?secret=wjrD1lVylF\" width=\"100%\" height=\"575\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen=\"\"><\/iframe>\n<\/p>\n<\/figure>\n<p>But to do so would take bringing in US dollars, acquired for $1, to sell at a markup on Binance.US.  That&#8217;s currently impossible as users can no longer deposit or withdraw fiat.<\/p>\n<p>Binance.US has struggled with odd pricing for months now.  In May, BTC and ETH traded at <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blockworks.co\/news\/bitcoin-on-binance-premium\">more than 3% premium<\/a> compared to rival platforms due to poor liquidity. <\/p>\n<p>That gap closed within about two weeks, although the current situation may last much longer.<\/p>\n<hr class=\"wp-block-separator\"\/>\n<p><strong>Get the day&#8217;s top crypto news and insights delivered to your email every evening. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blockworks.co\/newsletter\/?source=end\">Subscribe to Blockworks&#8217; free newsletter<\/a> now.<\/strong><\/p>\n<p><strong>Want alpha sent directly to your inbox?  Get degen trade ideas, governance updates, token performance, can&#8217;t-miss tweets and more from <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blockworks.co\/newsletter\/research\">Blockworks Research&#8217;s Daily Debrief<\/a>,<\/strong><\/p>\n<p><strong>Can&#8217;t wait?  Get our news the fastest way possible. <a rel=\"nofollow noopener\" target=\"_blank\" node=\"[object Object]\" href=\"https:\/\/t.me\/blockworks_news\">Join us on Telegram<\/a> and follow us on <a rel=\"nofollow noopener\" target=\"_blank\" node=\"[object Object]\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMPyTxgswn6_dAw\">google news<\/a>,<\/strong><\/p>\n<hr class=\"wp-block-separator\"\/>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The US dollar has become expensive on Binance.US since it lost its banking partners last month, with fiat pairs for cryptocurrencies trading at nearly 8% discount. In effect, the US dollar has depegged from the stablecoins \u2014 the opposite of what usually wracks crypto nerves. Liquidity lower than demand has apparently pushed USD prices higher [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":120300,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-120299","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/120299","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=120299"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/120299\/revisions"}],"predecessor-version":[{"id":120301,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/120299\/revisions\/120301"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/120300"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=120299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=120299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=120299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}