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Bitcoin withdrawals on some crypto exchanges and platforms such as Binance and Robinhood are experiencing problems due to Bitcoin network congestion causing a large number of pending transactions and record-high fees. As a result, Binance temporarily suspends BTC withdrawals, but data shows large Bitcoin outflows.
Reason Behind Large Bitcoin Outflow from Binance
In the last two days, the total exchange outflows from the crypto exchanges are 200k. Binance has an exchange outflow of 190k worth nearly $5.5 billion, as per CryptoQuant data.
However, the actual exchange outflow from Binance is far lower as the exchange takes several steps including wallet transfers and enabling Bitcoin Lightning network to resume BTC withdrawals.
Julio Moreno, head of research at CryptoQuant, in a tweet on May 8 revealed that people are commenting on huge Bitcoin outflows from Binance. Transactions such as 17k and 40k BTC on Sunday were recorded from Binance to other wallets.
However, Binance sent these BTCs to a newly created wallet address that actually belongs to the crypto exchange Binance. Effective outflows are likely near 10k BTCs, which is far lower than the Binance outflow values shown on CryptoQuant.
A lot of people commenting about the huge Bitcoin outflows from Binance today.
Two transactions of 117K and 40K Bitcoin respectively.In reality, these are bitcoin sent to newly created change addresses that belong to Binance.
Effective outflows are most likely just 10,100… pic.twitter.com/c5z8WOshG6
— Julio Moreno (@jjcmoreno) May 7, 2023
Binance also shared that some data are showing large outflows from the exchange. These outflows are actually movements between Binance hot and cold wallets due to the BTC address adjustments.
As per DefiLlama data, Binance has Bitcoin worth $16.99 billion in the exchange and the TVL is $65.61 billion.
Bitcoin Price Falls After Rising Above $29,000
BTC price fell 3% in the last 24 hours, with the price currently trading at $28,200. The 24-hour low and high are $28,082 and $29,119, respectively. Furthermore, the trading volume has decreased by 13% in the last 24 hours, indicating a decline in interest among traders.
Bitcoin selloff has triggered a market-wide selling in other altcoins, with Ethereum price sliding 2% to $1,850 in the last 24 hours.
Also Read: Crypto Market Selloff: Bitcoin, Ethereum Price Falls Sharply
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