At the moment, the price of Bitcoin (BTC) is probably falling faster than Niagara Falls. And as a result, crypto exchange Binance has announced a temporary hold on all Bitcoin withdrawals, pending further notice.
Binance Imposes Temporary Hold on Bitcoin Withdrawals
On Monday, the CEO of Binance, Changpeng Zhao (CZ) announced the temporary pause via his official Twitter handle. According to him, the hold is a necessary line of action, as there is a serious Bitcoin-related backlog of transactions on Binance. However, Zhao was also quick to add that the move is in line with efforts to help relieve the traders, even as their funds remain safe.
Interestingly, the CEO was initially hoping that normalcy will be restored within 30 minutes or thereabout. Hence his earlier tweet:
“Temporary pause of $BTC withdrawals on #Binance due to a stuck transaction causing a backlog. Should be fixed in ~30 minutes. Will update. Funds are SAFU.”
‘Safu’ is a term that stands for Secure Asset Fund for Users. The exchange platform established Safu in 2018 to ensure that customer funds are protected at all times, even in worst-scenario cases.
Meanwhile, the initial estimate has certainly turned out to be wrong. Zhao has now tweeted another announcement, claiming that the fix will take a little longer than earlier anticipated. He also added that the backlog may be impacting only the Bitcoin network. That is, users could carry out their BTC withdrawals on other networks, including the BEP-20.
…As Crypto Market Bleeds
Monday saw the overall market capitalization of cryptocurrencies falling below $1 trillion. That’s more than a 33% fall from grace from its $3 trillion value just last November.
Meanwhile, the Bitcoin price jas also fallen by more than 15% in the last 24 hours. As of publication, the BTC price stands at $23,348, according to CoinMarketCap. This is its lowest price level since late 2020.
It should however be noted that concerns are already being raised regarding the BTC withdrawals issue. A Terra insider known online as Fatman, says he hopes that the withdrawal issue is as temporary as Binance says. “Some additional clarity would be nice,” he says.