Bitcoin Price Struggles as Congestion Frustrates Traders
Bitcoin’s price is down as the ongoing congestion frustrates traders and pressures market sentiment. The largest cryptocurrency continues to experience a dip in sentiment after transaction fees hit their highest levels ever and the mempool became almost 98% full. Mass transactions, referred to as “spamming,” on the Bitcoin network lie at the center of the problem, market participants believe. The impact was worsened, however, by largest global exchange Binance repeatedly halting BTC withdrawals, blaming “congestion” for the outages. Binance created a backlog of withdrawals, which served to worsen already nervous market sentiment.
BTC/USD nonetheless stayed suppressed, standing at $27,617 at the time of writing and corresponding to a drop of 7.4% versus local highs seen over the weekend. Meanwhile, Binance’s in-house token, Binance Coin (BNB), matched Bitcoin’s 24-hour losses, down around 2.4% to trade near $315.
Binance’s CEO, Changpeng Zhao, called the market reaction to the withdrawal pauses “FUD”- Fear, Uncertainty, and Doubt. It is not the first time that Binance has found itself at the center of BTC price controversy.
With that, Bitcoin traders are beginning to eye potential targets for a long entry amid an extended downtrend. Some traders are speculating an uptick may ensue due to the “gap” in CME Group Bitcoin futures markets – an old adage in classic style. Others eyed targets closer to spot.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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