Coinbase's Bitcoin discount rate hit a one-year high as Binance's frozen operations hindered cross-platform arbitrage. This abnormal spread was due to Binance's emergency freeze on deposits and withdrawals following a massive $6.3 billion hack on October 29-30, trapping liquidity and preventing large traders from balancing Bitcoin prices between the two platforms through arbitrage. Alex Thorn, Head of Research at Galaxy Research, noted that under these circumstances, Coinbase's discount rate is temporarily no longer a signal of weak US demand. Binance has gradually resumed withdrawals on November 1, and the market is watching when arbitrageurs will eliminate this spread.