Did Crypto Exchange, Gemini, Run Out of Bitcoins to Withdraw?

By Nivesh Rustgi
Published September 4, 2020 Updated September 13, 2020
Best Buy In




bitcoin gemini buy the dip
Image Source: Shutterstock

Did Crypto Exchange, Gemini, Run Out of Bitcoins to Withdraw?

By Nivesh Rustgi
Published September 4, 2020 Updated September 13, 2020

Bitcoin price dropped as low as $10,000 yesterday with the altcoins following the pursuit. The dip began on Wednesday when leading crypto exchanges like Bithumb, Binance and Coinbase experienced issues like police raids and congestion due to high network fees on Ethereum.


Investors still holding bullish sentiments are looking for reversal signs to buy the dip. According to update for data analytics firm, Coinmetrics, price quotes on Gemini are greater than other exchange pointing towards a bullish buyers inclination.

Just this morning, a user on Gemini noted that he was unable to withdraw Bitcoin from the exchange.

Jameson Lopp, a Bitcoin programmer presented the following theory for the withdrawal suspension. He tweeted,

Probably ran out of funds in their hot wallet and need to run over to the cold storage vault in order to re-up. Bitcoin supply held by exchanges continues to decrease.

Usually, exchanges keep multiple wallets to manage their customer’s holdings. A hot wallet is an active wallet that is used for the daily purposes of the exchange. The cold wallets which hold the majority of the exchange assets are used to manage liquidity in the hot wallets. Hence, safeguarding the funds from exchange hacks and providing timely liquidity to the hot wallets. The exodus from exchange wallets has been ongoing since April as users move their funds into self custody or other private custodians.

Gemini, being one of the leading regulated exchanges in the US seemed to have temporarily to have run out of its on-hand liquidity as traders rush to buy the dip. Nevertheless, the funding rate on derivative exchange holds towards a bearish sentiment pointing to a deeper correction around $9000.

At what price are you buying the dip? Please share your views with us. 


The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Nivesh Rustgi
1181 Articles
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com

Loading Next Story