Upbit, a prominent digital asset exchange based in South Korea, recently announced delays in the withdrawal of Bitcoin (BTC) due to network congestion. The platform cited issues related to the Bitcoin network’s congestion, impacting the smooth withdrawal process for digital asset holders.
Impact on Withdrawals and Deposits
In addition to the withdrawal delays, Upbit stated that the deposit return process would also be affected during this period. The congestion within the Bitcoin network appears to mirror the recent resurgence observed in Bitcoin, reminiscent of the 2021 bull market.
According to Upbit’s statement, the exchange plans to process withdrawals sequentially, prioritizing those transactions that have successfully navigated network stabilization and block processing.
Upbit Bitcoin Network Congestion Amid Market Resurgence
Upbit’s announcement sparked speculation among crypto enthusiasts, highlighting the repercussions of network congestion on both withdrawals and deposits of cryptocurrencies, particularly Bitcoin.
Recent data reveals a surge in the open interest of Bitcoin options, hitting a new high of around $14.9 billion, surpassing the October 2021 milestone of $14.4 billion. This surge in interest aligns with the period just before Bitcoin reached its peak value of nearly $69,000.
Additionally, the perpetual futures market funding ratio surged to 0.02%, mirroring previous bull market fervor, leading to heightened BTC transactions. This surge in activity contributed to the congestion within the Bitcoin network, which occurs when transaction volume exceeds the network’s capacity.
Bitcoin Price Movement
Presently, Bitcoin’s price has experienced a slight decline of 3.24% in the last twenty-four hours, reaching $36,181.13. Over the past week, the price dipped by 1.16%. However, within the last month, Bitcoin surged impressively by 26.71%, indicating positive market sentiments. The fluctuations in Bitcoin’s price have garnered substantial global attention.
The congestion issues faced by Upbit highlight the challenges arising from increased network activity and the impact it has on transactions, reflecting a similarity to the Bitcoin market dynamics witnessed during the significant bull run of 2021.