- Bittrex Global cryptocurrency exchange is closing down soon, which has led to Bitcoin trading at over $10,000 premium on the platform compared to other exchanges
- The premium pricing indicates users are converting holdings to crypto for withdrawal ahead of closure, as Bittrex is discontinuing USD payouts
- Bittrex Global has faced regulatory struggles, halting US operations, filing bankruptcy, and reaching a $24M settlement with regulators in the past year
Bittrex Global, a cryptocurrency exchange, is set to close down operations imminently. This impending closure has led to Bitcoin (BTC) trading at a substantial premium exceeding $10,000 on the platform, according to data from Bittrex’s website.
The Premium Pricing on Bittrex Global
The exchange’s BTC/US Dollar pair surged to $46,300 before retracing to $44,613 at press time. This is significantly higher than the current average price of $36,450 on major platforms like Binance and Coinbase.
Data from Tradingview shows that BTC trades on Bittrex Global have diverged all year but have become more prominent in the past day. This premium trend also extends to Ethereum (ETH) pairings with the US Dollar. The ETH/USD pair trades for over $2,400, higher than the $2,038 rate on other exchanges.
Interestingly, asset pairings with stablecoins like USDT don’t reflect this premium and are trading at regular prices. Data shows the exchange’s BTC/USD and ETH/USD pairs recorded around $4 million worth of trades in the past day.
What’s Causing the Premium Trades?
This premium pricing may indicate users are shifting assets into leading digital assets for withdrawal, as Bittrex Global already informed users it is discontinuing US dollar payouts. Instead, users have been advised to convert holdings to cryptocurrencies or Euros before withdrawing.
The premium could also suggest market makers are leaving the platform due to its closure. This could result in reduced liquidity and order book depth, leading to a shallow market susceptible to large trades.
Bittrex Global’s Regulatory Struggles
Over the past year, Bittrex has struggled significantly due to regulatory challenges and low trading volumes. The firm halted US operations in April and filed for bankruptcy in May. Additionally, the company reached a $24 million settlement with US securities regulators in August.
Bittrex Global has yet to respond to a request for comment on the premium trading and imminent closure.