- Bittrex Global’s imminent closure triggers a surge in Bitcoin prices, reaching an extraordinary $46,300, well above the average on major exchanges.
- The unusual premium suggests users are shifting assets amid Bittrex’s discontinuation of U.S. dollar payouts, prompting a spike in both Bitcoin and Ethereum prices.
Bittrex Global is set to close its doors, triggering a significant surge in Bitcoin (BTC) prices. The platform’s BTC/US Dollar pair has soared to an impressive $46,300, surpassing the average price of $36,450 on major platforms such as Binance and Coinbase. This remarkable premium has captured everyone’s attention and we will take a deeper look at what actually happened in this article.
BTC/USD Pair Hits $46,300, Raises Eyebrows
The BTC/USD pair on Bittrex Global experienced an extraordinary surge, reaching $46,300 before retracing to $44,613 at the time of reporting. This surge exceeds the prevailing market rates on other leading exchanges. Data from Tradingview reveals that Bittrex Global’s BTC trades, while showing some divergence throughout the year, have become particularly prominent in the past day.
ETH/USD Pair Follows Suit
The premium trend extends beyond Bitcoin, affecting the Ethereum (ETH) market as well. Bittrex Global’s ETH/USD pair is trading at over $2,400, a significant increase from the $2,038 rate observed on other exchanges. This pricing trend raises questions about the factors influencing these premium trades.
Premium Pricing and Withdrawals
One plausible explanation for these premium trades on Bittrex Global is the impending discontinuation of U.S. dollar payouts. The exchange has communicated to its users the need to convert their holdings to cryptocurrencies or Euros before initiating withdrawals. This move may be prompting users to shift their assets into leading digital assets, contributing to the observed surge in prices.
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Market Dynamics and Liquidity Concerns
Another perspective is the potential departure of market makers from the platform due to its imminent closure. This exodus could result in reduced liquidity within the exchange’s order book, creating a market depth vulnerable to significant influence by large trades conducted on the platform. The dwindling market depth might explain the significant premiums witnessed in recent trades.
Also Read: Bittrex’s Court-Approved Bankruptcy Plan Concludes U.S. Operations
Bittrex’s Struggles and Regulatory Challenges
Bittrex Global’s struggles over the past year are well-documented, with regulatory challenges and low trading volumes posing significant hurdles. The firm ceased its American operations in April and subsequently filed for bankruptcy in the U.S. in May. Moreover, in August, Bittrex reached a $24 million settlement with U.S. securities regulators, further highlighting the challenges faced by the exchange.
In conclusion, these price changes on the Bittrex were anomalies. The platform’s decision to discontinue U.S. dollar payouts and the potential exit of market makers are contributing factors to the observed pricing.
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