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The latest report from online tracker Whalewire shows that Binance is experiencing an unusual outflow of Bitcoin over the past 24 hours, the highest in its history. Whalewire reported that more than 162,000 BTC worth more than $4.5 billion left the exchange in a day.
The tracker believes something fishy is going on with Binance as the cryptocurrency exchange suspended withdrawals three times today and has been offline for several hours. According to Whalewire, Bitcoin volume has fallen by more than 65% in the last 30 days.
WhaleWire reports that 162,000 BTC were moved in a day
Binance, the largest cryptocurrency exchange, has been relatively stable and resilient amid several ups and downs in the cryptocurrency industry. However, a recent observation makes one wonder if something fishy is going on with the exchange.
BREAKING: #Binance outflow data confirms largest withdrawal in it’s history, over 162,000 $BTC has left the exchange, valued at over $4.6 Billion.
Are Whales/Insiders jumping ship? 👀 pic.twitter.com/QSXYAEvHkt
— WhaleWire (@WhaleWire) May 7, 2023
Whalewire took note of the latest network data recorded on CryptoQuant. The data shows that Bitcoin outflows on Binance hit an all-time high of 162,000 BTC, worth over $4.5 billion at current prices.
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The data seems to be worrisome as it may cause fear, uncertainty and doubt, which will trigger a sharp drop in prices in the market.
However, some respondents stated that Binance could move coins to cold storage, while others blame network congestion for this.
Binance Clarifies the Reason for the Massive Bitcoin Outflow
Binance also confirmed this in a tweet posted about four (4) hours ago to assure that it is aware of the large outflow of funds recorded by some on-chain trackers. The exchange explained that it moved bitcoin from hot to cold wallets due to bitcoin address adjustments.
We’re aware that some data are showing a large volume of outflows from #Binance.
This ‘outflow’ are actually movements between Binance hot and cold wallets due to the BTC address adjustments.
— Binance (@binance) May 8, 2023
In line with the reasons for Binance’s massive outflows, the Bitcoin network is experiencing problems resulting in congestion and high fees.
According to Alexa, a cryptocurrency enthusiast with the @CryptoTea Twitter account, there are over 400,000 pending transactions on the Bitcoin network.
Cryptocurrency Tea said that the Bitcoin network witnessed an exploit that allowed people to upload useless data to the blockchain. According to the Tea cryptocurrency, just one person uploaded 10,000 images of monkeys to the Bitcoin blockchain, increasing the number of nodes by 1.4 GB. The network memory usage has now exceeded the 300 MB limit per 1 GB.
However, another bitcoin enthusiast denied the rumors that bitcoin was under attack, stating that the increase in usage due to the BRC-20 meme coins was the reason for the congestion.
Bitcoin is falling l Source: Tradingview.com
This discrepancy caused congestion that forced Binance to move BTC to cold wallets, putting withdrawals on hold until the issues were resolved. It is not yet known how this problem will affect Bitcoin, but its price has decreased by 3.29% over the past 24 hours.
Featured image from Pexels and chart from Tradingview.com