Bitcoin Price Briefly Surges to $138,000 on BinanceUS Amid Liquidity Crisis
Bitcoin experienced a sudden price surge to $138,000 on the BinanceUS exchange during early trading on June 21. However, this spike was short-lived and limited to the BTC/USDT trading pair on the exchange, while other assets maintained their normal trading levels.
The liquidity crisis faced by BinanceUS, resulting from legal issues and concerns over potential asset lock-ups following a lawsuit filed by the U.S. Securities and Exchange Commission (SEC), has led to market makers and traders leaving the exchange. Data from blockchain analytics firm Kaiko shows that BinanceUS's market depth for various tokens has decreased significantly since the SEC lawsuit, with liquidity dropping by nearly 80%.
Furthermore, the exchange's market share in relation to other U.S.-based platforms has plummeted to 1% compared to its previous high of 27%, indicating significant damage to its reputation.
BinanceUS has also faced challenges due to the decision of its banking partners to halt USD payment channels, resulting in Bitcoin trading at a discount on the exchange.
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