The imminent closure of Bittrex Global, a popular cryptocurrency exchange, has caused Bitcoin (BTC) to trade at a substantial premium. Data from the exchange’s website reveals that the BTC/US Dollar pair surged to $46,300 before retracing to $44,613 at the time of writing. This price surpasses the current average of $36,450 on major platforms like Binance and Coinbase. The premium trend is also observed in Bittrex Global’s Ethereum (ETH) pairing with the U.S. Dollar, with the ETH/USD pair trading over $2,400 compared to the $2,038 rate on other exchanges.
Interestingly, this premium pricing is not reflected in asset pairings with stablecoins like USDT, which continue to trade at regular prices. The data shows that Bittrex Global’s BTC/USD and ETH/USD trading pairs recorded approximately $4 million worth of trades in the past day. This premium pricing may suggest that users are trying to move their assets into leading digital assets for withdrawal, as the exchange has already informed users of the discontinuation of U.S. dollar payouts. Instead, users have been advised to convert their holdings to cryptocurrencies or Euros before initiating withdrawals.
The significant premium in BTC and ETH trading on Bittrex Global might also indicate that market makers are leaving the platform in light of its impending closure. This departure of market makers could lead to reduced liquidity within the exchange’s order book, resulting in a shallow market depth. Consequently, large trades conducted on the platform could have a significant influence on the market, potentially causing price fluctuations.
Bittrex Global has faced considerable challenges over the past year, including regulatory hurdles and low trading volumes. The exchange halted its American operations in April and subsequently filed for bankruptcy in the U.S. in May. Furthermore, the company reached a $24 million settlement with U.S. securities regulators in August.
Bittrex Global’s imminent closure has led to Bitcoin trading at a substantial premium compared to other major platforms. This premium is also observed in Ethereum trading on Bittrex Global. The discontinuation of U.S. dollar payouts and the departure of market makers may be contributing factors to the premium pricing. The closure of Bittrex Global comes after a tough year for the exchange, characterized by regulatory challenges and low trading volumes. As the cryptocurrency market continues to evolve, it remains to be seen how this closure will impact both the exchange and the wider industry.