Bitcoin trades at a $2k premium on Binance.US.

On June 6th, sources reported that Bitcoin was being traded at a $2,000 higher value on Binance US, an exchange that the United States Securities and Exchange Commission (SEC) claims is controlled by Changpeng Zhao and Binance Global.

Screenshots circulated on Twitter showed that at one point, BTC was trading at $28,505, which was approximately $2,000 higher than the global average value of BTC at the time, which was around $26,500.

Bitcoin Trading at a $2,000 Premium on Binance US

The price of Bitcoin remains volatile even at spot rates, according to price charts. The coin reversed losses on June 6th, less than 24 hours after dropping as low as $25,900 on June 5th.

Yesterday, the price of BTC surged, reaching levels as high as $27,000. This upward movement contradicted the bearish forecasts that analysts had predicted for June 5th. Additionally, this positive price movement helped alleviate concerns that the SEC lawsuit against Binance would hurt the value of BTC.

The fall in Bitcoin and crypto prices on June 5th coincided with accusations from the US regulator. The SEC listed 13 charges against Binance, including the allegation that the exchange, in conjunction with Binance US, enabled US citizens to illegally trade a wide range of cryptocurrencies.

Furthermore, the SEC stated that Binance and Binance US were unregistered trading platforms that continued to offer “multiple unregistered offers and investment schemes” aimed at “defrauding equity, retail, and institutional investors about purported surveillance and controls over manipulative trading.”

In response to the SEC’s lawsuit, on-chain data from Nansen shows that investors have continued to pull billions worth of crypto assets from Binance Global and Binance US.

The analytics platform has observed that over $3 billion of assets from multiple chains have been withdrawn from Binance, with more than $1.3 billion from Ethereum.

Intervention Fueling Bitcoin’s Demand

Meanwhile, Binance.US has suspended its over-the-counter (OTC) trading platform and reduced the number of supported trading pairs.

The announcement of Binance US’ changes affects roughly 90 pairs of the USDT, BTC, and BUSD pairs. It is also unclear when Binance US will resume its OTC trading services.

Furthermore, Binance US has reduced the trade and convert options to USDC, USDT, Bitcoin, Ethereum, and some of the top crypto assets, including Cardano’s ADA.

However, while there is a limitation on which assets existing clients can convert to, Binance US has placed caps on the maximum buy, sell, and convert options to USD at $10,000.

The suspension of the Binance US OTC platform and caps on USD conversion and assets could explain why Bitcoin is a highly sought after asset and is trading at a $2k premium in the United States for clients who use Binance US.

The SEC and the Commodity Futures Trading Commission (CFTC) have previously stated that Bitcoin is a commodity.

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