Binance is the most reputed crypto exchange there is, and on a daily basis, millions of users perform active trading and various transactions using this exchange. As Bitcoin has leveled up its game by breaking its own all-time high and going through the resistance level like a stack of domino tiles, the trading volume at various exchanges has gone insane. Binance is seeing the aftermath of this situation as the Bitcoin balance is draining at a faster pace, and 40,000 bitcoins have already been moved away from the most tenacious crypto exchange there is.
These kinds of outflows are not normal or natural, for that matter, because definitely, people are trying their very best to get their hands on Bitcoin at this very delicate time; anyhow, the flagship cryptocurrency is showing promise for the future. This outflow of 40,000 Bitcoin tokens happened after a significant price drop occurred for Bitcoin. Recently Binance has encountered a very serious bug that ran traders into slippage. This is the difference between the expected price of a digital asset and the actual price at the time of executing the trade.
Binance to Face Trouble Amid Abnormal Outflow of Bitcoin
The volatility factor for a digital asset climbs high whenever the order transcript on the market goes thin, and a dedicated exchange just can’t provide the required liquidity. All this, in turn, leads to massive price drops and valued appreciation for their dedicated cryptocurrency. Because of that bug initially, the price of Bitcoin dropped all the way to $8000, where most of these buy orders are taking place on the way down. To neutralize the situation and provide more liquidity to the crypto market for Binance, the main platform has shifted many of its funds towards the targeted platform; this very thing is also being registered as an outflow, thus the whole confusion.
According to the on-chain data and value metrics, there is no selling pressure on these crypto exchanges, and there has been no abnormal trading activity detected at all. This is definitely a very concerning piece of news and should be dealt with right away by the Binance crypto exchange.