There has been a confusing development regarding cryptocurrencies, one of the most discussed investment tools of recent years. Bitcoin (BTC) suffered a significant loss against the Australian dollar. BTC, which was traded at 28 thousand dollars in global stock markets, was traded at 22 thousand dollars in Australia. So what happened to this unbelievable situation? How did Bitcoin fall to a cheap spot against the Australian dollar?
Binance was working in Australia with PayID, one of the largest third-party payment providers in the country. However, on May 18, PayID and Binance Australia parted ways. As such, the mechanism by which investors can buy and sell cryptocurrencies by bank transfer has stopped. Binance Australia has announced that it will cease trading in Australian dollars (AUD) for the post-PayID period.
This is what caused BTC to depreciate against the Australian dollar
Binance has announced that Australian investors have until June 1 to withdraw their funds. As this deadline approached, investors fell into a senseless panic and tried to withdraw their crypto investments into their bank accounts. While large amounts of sales were entered, the fact that no one could buy BTC in Australian dollars caused the prices to drop due to the supply-demand balance. As a result of all these, BTC, which was at the level of 28 thousand dollars in the global market, could only find a buyer in Australia for 33,750 Australian dollars, that is, 22 thousand US dollars.
BTC/AUD current price chart
As you can see in the chart above; The BTC/AUD parity moves completely independently of the BTC/UDST parity. Moreover, this independence is expected to continue for a while.
Let’s come to the main issue: “If I sell my BTC, convert it to AUD and buy BTC, won’t I make a profit?”
The fact that Bitcoin is cheap in Australia may have whetted the appetite of crypto investors. After all, everyone wants to buy a commodity cheaper than it is and sell it at a profit. So, can’t we do this in AUD?
The answer to this question is unfortunately no. Let’s say you have 1 BTC. You may have planned to make a profit by converting it first to USDT, then to AUD, and finally back to BTC. However, this is not possible because you cannot buy AUD with USDT on Binance Global. Binance is not trading the USDT/AUD pair. This is what prevents you from trading. We tried, it didn’t work 🙂
Note: This content cannot be considered as investment advice. Although we failed in our attempt only on Binance Global, there are many cryptocurrency exchanges in the world. Maybe if you can find BTC/USDT, USDT/AUD and AUD/BTC pairs at the same time on another exchange, you can have a chance to profit.
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