BTC Price Discrepancy Sparks Rumors Of Market Maker Exits
Bitcoin (BTC) on Binance US is currently trading at a premium of around $690 compared to its price on Binance, according to reports. This is due to rumors of market maker exits, which have caused a spike in demand for the cryptocurrency on Binance US.
BTC on Binance US is currently quoted at $28,313.85, and BTC on Binance is currently quoted at $27,621.58, a premium of about $690. Adam Cochran stated that rumors of market maker exits caused a premium on the BTC/USD price on Binance US. https://t.co/LFOts2YV3t
— Wu Blockchain (@WuBlockchain) May 9, 2023
Speculation of Market Maker Exodus
At the time of writing, BTC on Binance US was quoted at $28,313.85, while on Binance it was priced at $27,621.58. The difference in price has led some traders to speculate that market makers are leaving Binance US, causing a shortage of BTC supply and driving up the price.
Adam Cochran, a partner at Cinneamhain Ventures, a blockchain venture studio, tweeted about the situation, saying that market makers are leaving Binance US and causing the BTC/USD price premium. Cochran noted that this is a temporary situation and that the premium will likely disappear once the market stabilizes.
Binance is one of the largest cryptocurrency exchanges in the world, offering a wide range of trading pairs and services. Binance US, a subsidiary of Binance, was launched in 2019 to cater to US customers. The exchange is registered with the Financial Crimes Enforcement Network (FinCEN) and operates in compliance with US regulations.
Fluctuating Price
This latest development highlights the volatility and unpredictability of the cryptocurrency market. Cryptocurrencies are known for their rapid price fluctuations and sudden price movements, which can be caused by a variety of factors, including market sentiment, news events, and technical factors.
The recent surge in demand for BTC on Binance US could be a result of several factors, including the increasing adoption of cryptocurrencies by mainstream investors, the growing popularity of decentralized finance (DeFi) platforms, and the increasing demand for digital assets as a store of value.
Despite the short-term uncertainty, the long-term outlook for cryptocurrencies remains positive. Many experts predict that cryptocurrencies will continue to gain in popularity and adoption, driven by the increasing demand for digital assets and the growing use of blockchain technology in various industries.
