The crypto space yet again landed in deep trouble as the star crypto witnessed a massive plunge in the early trading hours. The price marked the intraday low at around $28,004 and slightly rose above these levels. While the plunge appears to have been triggered by a huge whale transfer which kept the Bitcoin network congested and also compelled the exchange to halt the withdrawals of Bitcoin multiple times.
Bitcoin price was expected to maintain a notable upswing regardless of the prevailing bearish pressure. However, a huge withdrawal from Binance was recorded which is said to be the highest-ever withdrawal in its history.
As per the data from CryptoQuant, nearly 160,000 BTc left Binance worth over $4.6 billion which is the largest outflow mysteriously exited by whales. This may have led Binance to halt the withdrawals more than a couple of times and remain offline for several hours while the BTC volume has been consistently plunging over -65% in the last 30 days.
Many analysts and crypto enthusiasts smelt something fishy about this behavior. One of the analysts, The Wolf said,
“Billions of dollars have been withdrawn from Binance while the price of Bitcoin continues to plummet. This is a big red flag. This sort of behavior happens during insolvency/legal risks. To top it all off, withdrawals have stopped TWICE. Play it safe and self-custody for now,”
Moreover, the platform also recorded the highest number of pending transactions ever, which is two times higher than the highest point of the 2018 and 2021 bull markets. However, as per the latest update, the platform clarified the transfers as movements between Binance hot and cold wallets due to the BTC cold address adjustments. Additionally, the rounds of the exchange moving ahead with the Bitcoin Lightning network are also making a huge noise.
Collectively, it is pretty important presently, to keep a close watch on the Bitcoin price movements and also the whale transfers to safeguard the investors’ funds and interests.