Key points:
- Binance.US to offer zero-fee bitcoin (BTC) trading
- Coinbase Stock Dipped On This News
- Price War to Continue in “Crypto Winter”
- key point
Last week Binance.US, the US trading affiliate of the world’s largest crypto exchange by trading volume, Binance, announced Bitcoin (BTC) trading for zero-fees. This led to a fall in the share price of rival exchange Coinbase and highlights a likely ongoing price war amid heightened competition as the industry enters what many are calling a “crypto winter”.
Binance.US to offer zero-fee bitcoin (BTC) trading
Binance.US announced on 21st June 21 that it was offering zero-fee trading to trade Bitcoin against the US dollar, BinanceUSD, USD coin and Tether, extended to all existing and new clients. In a Bloomberg interview, Brian Shroder, the CEO of Binance.US said the move was “something that we want to do because we can. This will generate positive user sentiment that will bring us new users”, adding “since inception, we have been known for our really low fees.”
Also Read: How Low Can We Go? Bearish Bitcoin and Ethereum Targets
Coinbase Stock Dipped On This News
In reaction to this announcement, the stock price of rival exchange Coinbase fell on 22nd June by 9.7% but did rebound on Friday. Other competing exchanges also suffered share price losses. It would seem that Binance is establishing itself as an even more dominant force as the cryptocurrency exchange that will lead the industry into, through and out of the “crypto winter”.
Price War to Continue in “Crypto Winter”
The move to trade Bitcoin with zero-fees is likely just the beginning of a price war in the cryptocurrency space The onset of a “crypto winter” in 2022 has been driven by the selloff in risky assets that have come in the wake of global inflationary pressures and more hawkish central banks, highlighted by the interest rate hikes from the US Federal Reserve. The aggressive sell off in cryptocurrencies and altcoins as highlighted in our post How Low Can We Go? Bearish Bitcoin and Ethereum Targets, alongside the suspension of withdrawals by exchanges such as Celsius, plus the axing of staff by major industry players, all point to a torrid time for the industry, which will likely lead increased competition, lower fees and probable consolidation.