Coinbase-Binance BTC Spread Hits Year-to-Date High as Market Watches Convergence After Arbitrage Recovery

TechFlow reported that, on November 1, monitoring by crypto market analysis account intangiblecoins showed that, after adjusting for USDT exchange-rate effects, the discount of Bitcoin prices on Coinbase relative to Binance reached the highest level year to date.

Analysis noted that price differences between exchanges can usually be used to observe funding demand across different markets, but cross-platform arbitrage activity was somewhat restricted during Binance's previous withdrawal suspension, meaning the current spread may not accurately reflect actual buying and selling demand in the U.S. market.

As Binance gradually restores withdrawals, the market will watch whether the Bitcoin spread between Coinbase and Binance narrows to judge whether price differences can return to normal levels once cross-platform arbitrage resumes.

Source: TechFlow