OKEx, the cryptocurrency exchange has terminated withdrawal from its platform from October 16 after the Chinese founder Xu Mingxin of the exchange was taken away by the Police amid the growing crackdown on OTC desks and to counter the growing money laundering issue. Mingxin was arrested in early October and the withdraws remained shut since then.
Last week the exchange had informed that they were working on resuming withdrawals and it would be active in the coming week without giving any fixed date for the same. Interestingly the arrested co-founder Mingxin also came back into the public domain with the announcement. It seems the troubled exchange has started to test the withdrawal system on its platform as it sent out 0.02 BTC just a couple of hours ago.
— Ki Young Ju 주기영 (@ki_young_ju) November 23, 2020
Could OKEx Withdralw Cause Volatility in Prices?
Bitcoin over the past couple of weeks has broken into a bull run seeing its price move from $13,000 to more than $18,900 in just over two weeks. The ongoing bull rally has seen the king coin register a three-year high and well on its course to go past its 2017 highs. Currently, BTC is consolidating around the $18,500 mark but many analysts believe that BTC has reached its top and a price correction of around 20-30% is on the cards.
On-chain vs spot volume ratio is suggesting this rally is losing steam
Admittedly, there is room left to the upside, but it seems off-chain volume has consumed the on-chain movements to a level of historical boundaries
Consolidation or reversal usually follows shortly pic.twitter.com/MJtFEAgrac
— //Fiat 𝕵ack 🐐 (@BTC_JackSparrow) November 22, 2020
The OKEx opening of withdrawal could be the trigger for the price correction as Ki Jong Yu, CEO of CryptoQuant believes that traders would rush to get their assets out of the exchange as it has remained shut for almost two months, the bulk withdrawal could trigger price volatility. Yu said,
“I think #OKEx withdrawal reopening may cause volatility due to bulk withdrawal requests. #OKEx has not announced the exact reopening time, so I recommend setting an alert on our website to respond in advance.”