- Veteran forex trader Peter Brandt commented on Bitcoin, Ethereum and altcoin USD pairs trading at a discount on Binance.
- Experts believe the discount is a result of market makers exiting the exchange.
- BNB price sustains above support at $233.
Peter Brandt, a commodity and foreign exchange trader, compared the discount on Bitcoin and Ethereum prices on Binance to the “popping of a bubble.” Brandt criticized Binance and Executive Changpeng Zhao (CZ), labeling the exchange the “scam of the decade.”
Binance’s native token BNB has sustained above key support at $233.
Also read: Winklevoss’ Gemini exchange sues DCG Group and Barry Silbert in attempt to recover funds
Peter Brandt comments on discounted Bitcoin and Ethereum USD pairs
On July 9, market participants noticed a widening gap in the USD pairs of crypto on Binance and other cryptocurrency exchanges. This was termed a “depeg” of cryptocurrencies among traders on crypto Twitter.
Bitcoin is trading at a nearly $2,500 discount on Binance US, offering traders a better price than other exchanges. However, most traders are likely to be unable to take advantage of the arbitrage opportunity. Only the USD pairs of cryptocurrencies are trading at a discount.
Binance.US users are unable to deposit USD to the exchange since the deposits have been suspended for nearly a month. Discounted cryptocurrencies can only be purchased via USD holdings already existing in users’ Binance wallets. This means not all traders can engage in the arbitrage opportunity.
Peter Brandt commented on the discounts and called the exchange a “scam” for its thinning liquidity in USD pairs.
The bubble is popping. Amazing that #cryptonerds who verbally debase $USD hold assets via $USDT via @cz_binance scam of the decade pic.twitter.com/z0H6gspLeo
— Peter Brandt (@PeterLBrandt) July 10, 2023
Brandt echoes the concerns of the wider crypto community that US Dollar withdrawals will be suspended on July 20 since The currency is being phased out on the exchange platform.
Experts believe market makers’ exit from the exchange is responsible for the declining spot prices of Bitcoin, Ethereum and altcoins.
Binance US #bitcoin trading at 26k vs 30k (current price)
— Boxmining (@boxmining) July 10, 2023
This is exactly what I WARNED you guys about market makers leaving US...
Full explanation in this video: https://t.co/Jl82aPoA43 pic.twitter.com/oBUs9UO9Iq
BNB sustains above support at $233
Despite the rising speculation in the crypto community, BNB price has sustained above $233. The exchange’s native token is currently trading below its three Exponential Moving Averages – the 10, 50 and 200-day EMAs at $237, $258.20, and $288.40.
BNB/USD one-day price chart on Binance
These three long-term EMAs are likely to act as resistances for BNB in its upward trend. The June 12 low of $220.40 could act as support for the token in the event of a decline.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.