Binance, the world's largest cryptocurrency exchange, moved around $4.4 billion worth of Bitcoin across its digital wallets on Sunday, according to CryptoQuant, a research firm. The tokens were transferred in two tranches, one of 117,000 and the other of 40,000. While Binance stated that Bitcoin was transferred between hot and cold wallets, Cold wallets, which are not connected to the internet, are commonly regarded as a safer way to store cryptocurrencies.
When asked to comment, Binance referred to a blog post from earlier this year, in which the company stated that large crypto exchanges use dynamic management systems that work with both cold and hot wallets to ensure liquidity and security. The mistrust surrounding the crypto industry, caused by the previous year's crypto crash and bankruptcies like FTX, has led crypto traders to be cautious about major changes in exchange assets.
Binance halted Bitcoin withdrawals temporarily for about 90 minutes on Sunday, citing congestion on the token's blockchain. On Monday, the exchange suspended Bitcoin withdrawals again for the same reason. After the company increased fees for pending transactions, the latest halt was lifted to get them picked up by Bitcoin miners, who operate the token's underlying blockchain.
On Monday, Bitcoin experienced a decline due to a wider drop in the cryptocurrency markets, dropping as much as 3.1%. The leading digital asset is currently trading at $28,000.
Binance's movement of $4.4 billion worth of Bitcoin highlights the company's continued efforts to maintain liquidity and security for its customers. Despite the mistrust that exists in the industry, Binance's use of both hot and cold wallets underscores the importance of dynamic management systems to ensure that cryptocurrencies remain safe and secure.
