Network Congestion and BTC Withdrawal Issues: Uncovering the Facts and Impact on Crypto Markets

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Bitcoin withdrawals have been facing issues on certain crypto exchanges and platforms, including Binance and Robinhood, due to network congestion leading to a large number of pending transactions and record-high fees. Consequently, Binance temporarily suspended BTC withdrawals, yet data reveals substantial Bitcoin outflows.

In the past two days, there has been a total exchange outflow of 200k from crypto exchanges, with Binance accounting for 190k, valued at nearly $5.5 billion, according to CryptoQuant data. The actual exchange outflow from Binance, however, is significantly lower, as the exchange employs various measures such as wallet transfers and enabling the Bitcoin Lightning network to resume BTC withdrawals.

Julio Moreno, CryptoQuant’s head of research, tweeted on May 8th about substantial Bitcoin outflows from Binance, including transactions of 17k and 40k BTC on Sunday. As it turns out, Binance sent these BTCs to a newly created wallet address that belongs to the exchange, resulting in effective outflows closer to 10k BTCs, much lower than the Binance outflow values displayed on CryptoQuant.

Binance also clarified that some data demonstrating large outflows from the exchange were, in fact, movements between Binance hot and cold wallets due to BTC address adjustments. DefiLlama data shows that Binance has $16.99 billion worth of Bitcoin in the exchange with a TVL of $65.61 billion.

The price of Bitcoin, after climbing above $29,000, has dropped 3% in the last 24 hours, currently trading at $28,200. The 24-hour low and high stand at $28,082 and $29,119, respectively. Additionally, trading volume has dipped by 13% in the past 24 hours, suggesting a decrease in interest among traders.

This decline in Bitcoin value has caused a market-wide selloff in other altcoins, with Ethereum’s price slipping 2% to $1,850 in the last 24 hours. This volatile landscape calls for diligent market research before investing in cryptocurrencies as the author or the publication does not hold any responsibility for personal financial losses.

Source: Coingape

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