Bitcoin price briefly pumps to $138,000 on Binance.US amid exchange’s liquidity crisis

Bitcoin (BTC) experienced a “flash-pump” to $138,000 connected Binance.US during aboriginal trading hours of June 21, according to data from the crypto exchange.

The Bitcoin terms spike lasted lone seconds earlier returning to its mean level and was circumstantial to the exchange’s BTC/USDT trading pair, portion different assets continued trading astatine their accustomed levels.

Low marketplace depth

Since the U.S. Securities and Exchange Commission filed its lawsuit against Binance.US connected June 5, marketplace makers and traders person fled the speech owed to concerns astir imaginable plus lock-ups.

Blockchain analytical steadfast Kaiko reported that the exchange’s marketplace extent fell by astir 80% arsenic of June 12, with its marketplace extent for 17 tokens dropping to $7 cardinal from the $34 cardinal recorded connected June 4—a time earlier the SEC’s lawsuit.

Source: Kaiko

At the time, Kaiko said:

“[Binance US] marketplace makers are tense and privation to debar volatility-induced losses and the non-negligible anticipation that their assets could get stuck connected an speech à la FTX collapse.”

Additionally, the exchange’s liquidity contented has been exacerbated by its banking partners’ determination to halt their USD outgo channels. In May, Bitcoin traded astatine astir a 3% discount connected Binance US compared to different rival exchanges.

Binance.US marketplace stock plunges

The embattled crypto speech marketplace stock successful narration to different U.S.-based platforms has dropped to 1%, according to Kaiko data.

Kaiko noted that this was importantly little than its all-time precocious of 27% recorded a fewer months ago, adding that “the exchange’s estimation has been severely harmed” by the suit filed against it by the SEC.

Source: Kaiko

While the Court rejected the SEC’s effort to frost its assets, the speech has had to woody with different issues, including the layoff of astir 50 unit members crossed respective departments.

Meanwhile, Binance US has maintained that it would combat the SEC’s allegations successful Court.

The station Bitcoin terms concisely pumps to $138,000 connected Binance.US amid exchange’s liquidity crisis appeared archetypal connected CryptoSlate.