Binance Resumes BTC Withdrawals
The move by Binance comes after an issue with one of the exchange’s hot wallets was discovered and quickly fixed. Zhao had initially estimated that the withdrawals would resume in about half an hour, but it took a bit longer.
Despite the brief pause in withdrawals, trading on the exchange was unaffected and continued throughout. Binance is currently the world’s largest crypto exchange by trading volume, according to data from CoinMarketCap.
The news of the resumed withdrawals will likely be a relief to many users, as any issues with withdrawing funds can cause significant anxiety. However, it appears that Binance has once again resolved the issue quickly and efficiently.
The slump in crypto prices has led to a surge in withdrawals, with Bitcoin trading below US$24,000 on Monday. This is the lowest level since December 2020. The price of Ethereum has also fallen sharply, trading below US$2,000 for the first time since January 2021.
According to CoinDesk statistics, the world’s largest cryptocurrency, bitcoin, has fallen below the $23,000 threshold. Bitcoin dropped almost 17% once, trading at roughly $22,765. Some of those losses were recouped later, and bitcoin was trading at $23,351 on Wall Street, down 15%. Over the weekend and into Monday afternoon, the whole cryptocurrency market had lost more than $200 billion. According to CoinMarketCap statistics, the cryptocurrency market capitalization dipped below $1 trillion for the first time since February 2021 on Monday.
The decline in prices comes as investors increasingly lose faith in the prospects for cryptocurrencies. Several factors have contributed to this loss of faith, including the increasing regulation of crypto assets by governments worldwide and the growing skepticism from financial institutions regarding their utility.
Celsius is just one of many crypto lending companies, and its recent decision to pause withdrawals has sparked fears of contagion throughout the industry. The problem is that when one company pauses withdrawals, it can have a domino effect on other companies, as customers worry about their ability to access their funds. This can lead to a run on the banks, so to speak, and can quickly spiral out of control.
The good news is that Celsius appears to be taking steps to try to contain the situation and prevent it from spiraling out of control. They are reportedly in talks with other lenders to find a way to allow customers to withdraw their funds without causing further panic. In addition, they are also said to be working on a plan to issue new loans to help those stuck in limbo with their existing loans.
It remains to be seen how effective these measures will be, but it is clear that Celsius is taking the situation very seriously. If they can successfully navigate this crisis, it will bode well for the future of the crypto lending industry as a whole.
Inflation is one of the main macro factors affecting the crypto markets. Prices are rising rapidly, and the Fed is expected to raise Interest rates this week to control inflation. This could lead to a sell-off in the markets, as investors seek to cash in on their gains before prices fall.
The other main macro factor affecting the markets is the continued uncertainty around regulation. While some countries have begun to take steps toward regulating the industry, there is still a long way to go. This lack of clarity dissuades many institutional investors from getting involved, which could lead to further weakness in the market.
Barry Pene is a stern blockchain research/copywriter. Barry has been trading cryptos since 2017 and has been invested in issues that would put the blockchain industry on the right pedestal. Barry's research expertise cuts across blockchain as a disruptive technology, DeFis, NFTs, Web3, and reduction of energy consumption levels of cryptocurrency mining.
