The world’s largest cryptocurrency exchange, Binance, halted Bitcoin withdrawals for several hours on Monday, sending shockwaves through the crypto market. Binance’s Bitcoin Withdrawal Halt, which was attributed to heavy volumes and rising processing fees, caused Bitcoin to drop 2% to a one-week low of $27,900.
Major crypto companies affected by Bitcoin Withdrawal Halt
Shares of crypto-related companies also took a hit, with Coinbase Inc. (COIN) falling 3.6%, Bitfarms Ltd. (BITF) dropping 5.1%, and Riot Blockchain Inc. (RIOT) and Marathon Digital Holdings Inc. (MARA) both declining by more than 6%.
Binance said in a tweet that it had adjusted its fees to “prevent a similar recurrence.” The company has had a number of technical issues in recent months, including a suspension of deposits and withdrawals in March.
The recent volatility in the crypto market has raised concerns about the sector’s overall health. Some analysts believe that the recent sell-off is a healthy correction after a period of rapid growth, while others are worried that it could be the start of a more prolonged bear market.
Only time will tell whether the crypto market can recover from its recent losses. However, the recent events have certainly shaken investor confidence.