Bitcoin has been sustaining support for quite some time. Sentiment surrounding the cryptocurrency king has been mostly positive since the price surged over the past few months.
Recently, however, Bitcoin FUD has been getting stronger. Initially, the FUD started due to the large number of BTC transactions made by Binance. There were 117,359 BTC outflows and 10,036 BTC inflows. Following these transactions, another 40,184 BTC were withdrawn.
These transactions have led many speculators to believe that Binance is selling their BTC holdings, although this may be due to adjustments to Binance’s internal cold wallets. Many members of the crypto community have expressed this reason.
“According to the on-chain test, it may be that the new address has been adjusted internally in the Binance cold wallet, and the new address has not moved after receiving the funds,” Wu Blockchain tweet.
Usually, this is enough to defuse unrest.
Conspiracy theory?
However, things got worse when Bitcoin exchanges on Binance stopped working. Specifically, the exchange suspended BTC withdrawals.according to account Official Twitter, caused by a large number of pending transactions.
Another reason cited by the Binance team is the sudden increase in BTC fees that the exchange did not anticipate. There have been multiple speculations about the reasons for the spike in Bitcoin fees.A lot of people suppose i think Bitcoin can fall victim to DDOS attacks.
A DDOS attack occurs when an attacker floods a network with a flood of requests or traffic, overloading network capacity and making it difficult to process transactions.
At the time of writing, Binance has reported that withdrawals have resumed.
Interestingly, another exchange that was also affected by the fee increase is Robinhood. New data shows a slowdown in the processing of bitcoin transactions on the Robinhood exchange.
How has Bitcoin been affected?
According to CoinMarketCap, the price of bitcoin has dropped 2% over the past 24 hours amid widespread FUD caused by these events. However, despite the price drop, holders continue to be bullish on BTC and hold on to it.
Source: Santiment
Traders are less bullish than holders, as the long-short ratio is clearly falling on the chart. This shows that BTC short positions outnumber long positions.
Source: Coinglass
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Ming Ying
According to AMBCrypto
