Mass withdrawal of Bitcoin from the Binance exchange. What does it mean?
Over the past 48 hours, funds worth more than $1.6 billion have been withdrawn from the cryptocurrency site. Why did users begin to massively withdraw their assets from the trading floor and how will this affect quotes in the future?
According to the reports of the cryptocurrency exchange Binance, on July 27, a large number of users brought out Bitcoin in an amount exceeding 13,000. Also, the withdrawal of coins from the trading platform continued on July 28. For 15 minutes, Binance received an outflow to 30,000 Bitcoin, which today amounts to $1.1 billion at the rate at the time of withdrawal. Bitcoin was derived in 3 equivalent amounts.
Output Response
The massive withdrawal of the coin from the cryptocurrency exchange may be a good signal for growth, but unfortunately it will not affect the market in any way, financial analysts say. In their opinion, now there is a quite logical reaction to innovations and additional restrictions in the work of the exchange.
A number of changes introduced to the functionality of the exchange led to the transfer of their user funds from this platform to other platforms.
Change of functionality of Binance cryptocurrency exchange
On July 27, the exchange announced a reduction in the daily limit on the withdrawal of coins for users who have passed standard verification. These users have a limit of 0.06 bitcoins – previously this limit was 2 bitcoins. For users who have been fully verified, this limit will be 100 bitcoins per day.
Earlier, on July 26, Binance imposed limits on the credit shoulder limit for newcomers, and this limit is up to 20Kh on futures trading. Also, CEO of trading platform Binance Changpeng Zhao, commented that within 14 days the credit shoulder limit will be reduced by five times for all.
As I shared earlier this week, Binance Futures has been limiting new futures accounts opened within the past 30 days to 20x leverage from July 19.
— CZ ? Binance (@cz_binance) July 27, 2021
From 27 July we will extend the limit to accounts opened within the past 60 days.https://t.co/rhIsY3LV8X
Also, the trading platform informed its users that trading pairs with AUD, EUR and GBR will become unavailable for margin trading from the fall of this year. In December, the trading platform will automatically cancel all trade orders in these pairs.
Movement on FTX
The credit shoulder limit in futures trading was also reduced by five times for FTX deriatives, which contributed to a large influx of bitcoins on the trading platform. This can be perceived as an advertising campaign, since recently the exchange has been doing everything to attract new users. For example, the head of FTX Sam Bankman-Fried spoke about the imminent purchase of Goldman Sachs.
Market Impact
Since large token movements do not directly depend on the market situation, they should not affect Bitcoin.
“Their nature in the future will be associated with the desire not to buy or sell, but to keep in a cryptocurrency wallet without any restrictions and without additional verification,” financial analysts say.
Large holders of bitcoins continue to save currency. Over the past 2 months, “whales” have acquired Bitcoin – more than 170,000 coins. that coin accumulation should be positive news for the market.
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