Is Binance OK?!

Since yesterday, Binance has moved more than $5 billion in the largest cryptocurrency, which is almost 30% of the exchange's net BTC reserve balance.

Over 183,080 BTC flowed out of the exchange in 24 hours, according to data from Coinglass, which alarmed some experts and prompted them to comment on the abnormal movements.

Around two and a half hours later, Binance resumed Bitcoin withdrawals and announced that it had modified its fees to avoid similar incidents in the future.

The movements occurred immediately following Binance's brief halt of BTC withdrawals on its platform. Binance later clarified, however, that the transfers were unimportant. Such changes are frequently read as indicators of investor confidence—or lack thereof—in the company.

For instance, Binance experienced a 24-hour flow of billions of dollars in cryptocurrency in December, which led some to question if its reserves were safe. When the withdrawals occurred, Binance CEO Changpeng 'CZ' Zhao declared it was “business as usual.”

Moreover, the exchange lost billions last month after the Commodity Futures Trading Commission (CFTC) filed a lawsuit against it for allegedly breaking trading and derivatives regulations.

After falling from a 10-month high of nearly US$30,500 in mid-April, the price of Bitcoin was trading above US$27,900 on Monday afternoon.

Shares of cryptocurrency- and blockchain-related companies fell in early trading hours on Monday after Binance halted its bitcoin withdrawals for several hours due to heavy volumes and rising processing fees.

Coinbase Inc (COIN.O), a cryptocurrency exchange, declined 3.6%, while Bitfarms Ltd, a blockchain farm operator, plummeted 5.1%. Along with falling bitcoin prices, shares of cryptocurrency miners Riot Platforms (RIOT.O), Marathon Digital (MARA.O), and Hut 8 Mining (HUT.TO) listed on the NYSE, all saw declines between 5.3% and 6.6%.

As of the end of 2022, Binance, the market leader in the global digital asset market, accounted for 92% of all bitcoin spot trading volume worldwide.