Binance Resumes Bitcoin Withdrawals After Second Pause in 12 Hours

Binance temporarily suspended Bitcoin withdrawals twice on Sunday due to a surge in unconfirmed transactions, which peaked at nearly 500,000.

As the Bitcoin network grapples with unprecedented congestion, leading crypto exchange Binance has been forced to temporarily suspend Bitcoin (BTC) withdrawals twice within a 12-hour window on May 8. In response to the high volume of pending transactions, Binance took swift action to adjust fees and integrate the Lightning Network, aiming to enhance transaction throughput and mitigate the impact on its users.

On Sunday afternoon U.S. time, Binance temporarily closed Bitcoin withdrawals for approximately two hours as the number of unconfirmed transactions reached an all-time high. Later that evening, the crypto exchange implemented a second pause, which also lasted just over two hours.

After the second brief pause, Binance resumed BTC withdrawals and reassured its user base that its digital assets remain secure as the platform continues to adapt to the evolving crypto landscape.

Roughly three hours after its initial announcement, Binance informed users that Bitcoin withdrawals had been reactivated, with pending transactions being processed at higher transaction fees to tackle the congestion.

This situation triggered Bitcoin

As the second withdrawal suspension was implemented, the number of unconfirmed transactions had surged to nearly 500,000, up from around 400,000 during the first pause. Over the past 12 hours, this figure has started to decrease, currently standing at just over 430,000 transactions.

The repercussions of this event have also impacted Bitcoin’s price, with its value experiencing a downward trend. At the time of writing, the price of Bitcoin has slipped to $28,240, representing a 2.6% drop within the last 24-hour period. This development highlights the sensitivity of cryptocurrency markets to network congestion and the measures taken by major exchanges to address these challenges.

In addressing system outages, CZ, CEO of Binance, reassured that there were no issues and asserted that this indicated a thriving bull market. The substantial number of transactions in the queue highlighted the market’s vigor and eagerness of investors. This clarification provided solace to those who had been anxiously awaiting an explanation for several hours.

CZ said:”Gas prices fluctuate and go up, transactions get stuck, fees go up, and people complain. Bull market issues… Look on the bright side though, still faster and cheaper than fiat,”.

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