Crypto stocks drop after Binance halts bitcoin withdrawals for hours

At the beginning of Monday’s trading hours, the stocks of cryptocurrency- and blockchain-related companies dropped due to Binance halting bitcoin withdrawals for a few hours.

Bitcoin also decreased by 2% to a one-week low of $27,900 as a result of this. Coinbase, Bitfarms, Riot Platforms, Marathon Digital, and Hut 8 Mining experienced declines ranging from 3.6% to 6.6%, following the lower bitcoin prices.

Binance, the biggest crypto exchange in the world, paused bitcoin withdrawals for one hour on Sunday and for about three hours on Monday, citing an excess of pending transactions and low rewards for miners.

Binance stated that its fees did not account for the recent increase in bitcoin-network gas fees. Oppenheimer’s Owen Lau explained to Reuters that there was a lot of traffic congestion and high gas fees over the weekend.

Binance tweeted that it had adjusted its fees to avoid a recurrence of the issue. In March, Binance suspended deposits and withdrawals due to technical problems.

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