The decline in Bitcoin on Monday increased the losses in altcoins and a long position of $ 100 million was liquidated in a short time.
After yesterday's decline, Bitcoin price moved around $27500 on Binance Global, while the price of Binance's US arm started trading at $28200 with a premium of about $700.
We know that the demand in the US-based stock markets in bull markets causes the price in these stock markets to be traded at a premium. However, this is happening for the first time in Binance.
Because we usually observed that the price on the Coinbase exchange was premium compared to other exchanges. This time, we see that there is a serious difference between the price on Binance US and the price of BTC on the Coinbase exchange.
Price Difference May Be Due to Market Makers
It has been evaluated that the price difference in Binance US may be related to a regulatory action that may come from the USA. It is evaluated that the market makers tasked with providing liquidity to the order book exited Binance US to escape regulatory pressure, which may have created this price difference.
After the CFTC filed a lawsuit against Binance in the past weeks, the claims that the SEC could sue Binance US may have caused the market makers to leave.
Speaking to Coindesk, Blofin's Griffin Ardern said the weakening of market depth in the order book on Binance US is a sign of the exodus of market makers.
“When liquidity is sufficient, the depth of the buy and sell sides often changes constantly, but a dynamic balance is maintained.
The order book on Binance.US looks unbalanced with far more buy orders than sell orders.
Such a depth chart is undoubtedly abnormal for a giant stock market.
Major market makers are leaving BinanceUS, likely due to regulatory pressure and renewed compliance requirements.”