When Bitcoin surprises. Yesterdaywhile Bitcoin (BTC) climbed back to $30,000its price experienced an unexpected jump in the morning on Binance.US, briefly reaching the $138,000. An ephemeral phenomenon which, in the end, only highlights the problems of Binance US. Explanations.
Bitcoin: a wick is burning on Binance.US
So yesterday morning, BTC/Tether (USDT) pair literally has pulverized the price of BTC on Binance.US winning until $138,000. This phenomenon, lasting a few seconds, then got back on track following the real price of the queen of cryptocurrencies.
This unusual outbreak originated in a low liquidity on the Bitcoin/Tether trading pair on the US exchange. Market depth data revealing that buying $400,000 worth of BTC on this trading pair can result in a 2% price increase. By comparison, it would take at least $842,000 to produce a similar effect on the Bitcoin/US Dollar trading pair.
In other words, there is therefore less BTC available for purchase and sale internally, on the platform, which can cause this one-time fluctuation in the price of BTC and take it to seek the 138,000 dollars.
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Binance.US shows signs of weakness
Once the phenomenon has been identified and understood, this wick highlights the instability of Binance US pissed off by SEC attacks. Indeed, after attacking Paxos, the issuer of the stablecoin of the parent company Binance, the SEC attacked its boss, Changpeng Zhao and its US subsidiary.
In detail, these are 13 counts which weigh against the world leader in cryptocurrency platforms. THE users’ crypto assets were frozen, even if an agreement has been reached by both parties to limit the damage and secure Binance.US customers.
The aggressiveness of Securities and Exchange Commission against the crypto sector suggests its first consequences of the lack of liquidity on the platform. The now open war heats the spirits. Gary Gensler, leader, does not even hide his dream ofa single digital currency”: the US dollarwhile bitcoin ETF applications from big finance tycoons are springing up like hotcakes.
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