Binance makes large Bitcoin transfer as BTC withdrawals temporarily paused due to network congestion
Binance, the world's largest cryptocurrency exchange, moved about $4.4 billion worth of bitcoin across its wallets on Sunday, citing BTC address adjustments. The move was identified by CryptoQuant’s Head of Research Julio Moreno, who noted that the bitcoin was sent to newly created change addresses belonging to Binance.
A lot of people commenting about the huge Bitcoin outflows from Binance today.
— Julio Moreno (@jjcmoreno) May 7, 2023
Two transactions of 117K and 40K Bitcoin respectively.
In reality, these are bitcoin sent to newly created change addresses that belong to Binance.
Effective outflows are most likely just 10,100… pic.twitter.com/c5z8WOshG6
Additionally, Binance temporarily halted bitcoin withdrawals over the weekend due to network congestion caused by an influx of pending transactions with low gas fees. As a result, Binance replaced the transactions with a higher fee and adjusted its fees to prevent similar incidents in the future. The number of unconfirmed transactions still stands above 400,000, near record levels, which can be partly attributed to the increasing adoption of Ordinal inscriptions on the Bitcoin network.
