Bitcoin in the news: Binance Withdrawal Woes, Active Whales, Bullish Predictions

Photo of author

By A D

Binance halting Bitcoin withdrawals temporarily, $240 million worth of BTC moved by whales, and big activity accounts make headlines for Bitcoin.

Binance, the world’s largest cryptocurrency exchange, halted Bitcoin withdrawals not once, but twice in less than 12 hours. The exchange cited network congestion and high transaction fees as the reasons for the pause. Binance’s decision caused concern among investors, as it suggested that there were issues with the network.

Binance is not the first exchange to experience issues with Bitcoin’s network congestion and high transaction fees. In the past, other exchanges, such as Coinbase, have also experienced delays and temporary pauses in Bitcoin withdrawals due to similar issues.

After temporarily pausing withdrawals, Binance resumed BTC trading by hiking its gas fees. Gas fees are fees paid by users to miners for processing transactions on the blockchain. By increasing gas fees, Binance hoped to encourage miners to prioritize Bitcoin transactions and reduce network congestion.

Binance announced recontinuation of BTC transactions shortly after, via twitter.

Network Value to Transaction (NVT) value of 57 for bitcoin is 6% higher than its average for the entire year, which is 53.7. The NVT ratio is computed by dividing the market value of BTC by the volume that has been transmitted on-chain. The surge in transaction fees was due to the high demand for Bitcoin transactions, which had caused network congestion. As a result, Bitcoin users were forced to pay higher fees to have their transactions processed faster.

The crypto market had dropped to a week low, and that Binance’s decision to halt Bitcoin withdrawals twice in a day had caused significant concerns among traders.

Binance’s decision to hike gas fees was met with mixed reactions from the cryptocurrency community. Some users criticized Binance for increasing fees, while others understood the necessity of the move to maintain network stability.

Bitcoin transaction fees had surpassed block rewards. Block rewards are the Bitcoin rewards that miners receive for processing transactions. When the transaction fees exceed the block rewards, it indicates that users are willing to pay more to have their transactions processed.

Big Whale Movements

In another recent development, Bitcoin whales have driven $240 million away from exchanges. Large BTC holders, or whales, have been withdrawing their funds from exchanges and moving them to cold storage wallets.

One such instance was reported on April 25th, when a large Bitcoin wallet moved over 18,000 BTC to an unknown wallet address, causing concern among traders and investors. This movement was followed by similar actions from other large wallets, leading many to speculate about the motives behind the sudden movements.

The actions of Bitcoin whales have significant implications for the broader market. As large holders of the cryptocurrency, their movements can influence price action and market sentiment. For example, a sudden sell-off by a large whale could trigger a wave of panic selling among smaller traders.

Furthermore, the decrease in Bitcoin on exchanges could lead to a decrease in supply, which could drive up Bitcoin’s price. This move by Bitcoin whales is not new, as they have been known to manipulate Bitcoin’s price in the past. However, it is still a significant development that could affect Bitcoin’s price movements in the near future.

Possible Bitcoin Price

the bitcoin price chart for the past five days

In the first week of May 2023, Bitcoin’s price plummeted, sending shockwaves throughout the cryptocurrency market. The price of Bitcoin dropped from around $29,000 to $27,000, a significant decline of nearly 7% within the span of a week. The sharp decline was mainly due to network congestion, which caused transaction fees to surge, making it difficult and expensive to move funds on the blockchain.

The recent increase in Bitcoin holdings by long-term holders has important implications for the wider cryptocurrency industry. Firstly, it suggests that long-term holders see the recent price retracement as an opportunity to buy more Bitcoin at a discounted price. This behavior can create a price floor, as long-term holders are less likely to sell their holdings even during market downturns.

Additionally, it can reduce the impact of short-term price fluctuations on the market, providing a more stable environment for traders and investors. Despite concerns about Bitcoin’s price volatility, its increasing adoption by major companies and growing interest as an investment asset make it an exciting space to watch.

Leave a Comment