At the beginning of the week, the digital economy experienced a recession with capitalization falling by 1.22% to $1.2 trillion. On July 17, the price of Bitcoin (BTC) dropped below $30,000 per coin, while Ethereum (ETH) fell to around $1,890.
However, the divergence of prices for BTC, ETH and some other altcoins against the US dollar on the Binance US crypto exchange continues to increase.
As of July 17, BTC/USD trading is illustrating transactions at a significantly lower rate of $25,073, a significant 16.92% below the average global BTC exchange rate.
Similar discrepancies in Binance US exchange rates are seen with most crypto assets and stablecoins when compared to the US dollar. For example, Ethereum, which is currently trading at around $1,900, fell on Binance US against the US dollar to $1,595.
In addition, the USDT/USD pair is trading at $0.76 on this platform, well below the dollar peg. Similarly, BNB, despite having a market value of $242 per coin, is trading on Binance US for just $200. The differences have further widened over the past two weeks, with the exchange rate fluctuating between 2% and 5% by the end of June.
In early July, the gap between the US dollar and world exchange rates widened significantly. Their reason is due to the suspension of USD deposits by the platform, as a result of which customers cannot replenish their accounts.
Low dollar balances on the exchange have disrupted pricing as traders sell the coins at deep discounts. The duration and extent to which these differences persist remain uncertain.