Binance Withdrawals: While the cryptocurrency market went into green territory following the news of SBF arrest, a new wave of undercurrent contagion seems to be spreading. It has been over a month now since the bankruptcy of FTX was announced. Amidst a prolonged bear run, the collapse of the Sam Bankman-Fried crypto empire dealt a body blow to the industry. It remains to be seen how the market would react to the upcoming interest rate hike decision by the U.S. Federal Reserve.
Also Read: Bitcoin Price Crash Incoming After US CPI And Fed Rate Hike?
Binance Outflows – Danger Of Another Crypto Crash?
While the contagion effects of FTX meltdown and the subsequent crypto crash are still there to be seen, exchange activity is signaling at another potential bloodbath if things go further south. In the recent past, concerns were raised on the authenticity of Binance proof of reserves system. Reports suggested that there is no clarity on the amount of reserves and their whereabouts. Meanwhile, on chain data also suggests that the retail investors are trying to protect their assets by withdrawing assets from the crypto exchange.
According to data from blockchain analytics platform Nansen, there is a rise in withdrawals of ETH and ERC20 tokens from Binance in the last day or so.
“There is a spike in withdrawals from Binance in the last 24 hours with -$1.60 billion netflow. Its 7-day netflow is now at -$1.90 billion.”
Also Read: Here’s What SBF Planned To Say In His Testimony Today
Meanwhile, Bitcoin (BTC) price rose reasonably well in the last few hours. As of writing, BTC price stands at $17,417, up 2.53% in the last 24 hours, according to price tracking platform CoinMarketCap.
In a latest, the U.S. SEC alleged that Sam Bankman-Fried orchestrated a scheme to defraud equity investors by hiding a lot of activity behind the scenes. The probe on securities law violations are ongoing, it said in a statement.
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