Binance Allegedly Offloads Large Amounts of Bitcoin and Ethereum Holdings
Concerns have arisen in the crypto community regarding Binance's activities, specifically allegations of significant selloffs of Bitcoin and Ethereum. A market participant, AB Kuai.Dong (@_FORAB), highlighted on social media that Binance had potentially been offloading large amounts of these cryptocurrencies.
Market Impact
- Bitcoin price dropped to $92,000 on February 3 before a brief recovery to nearly $98,000 on February 11.
- Currently, Bitcoin is hovering around $95,000 after struggling to regain momentum.
- Ethereum also saw a decline, falling below $2,470 coinciding with Bitcoin's local low.
- Binance reportedly experienced a 94.1% reduction in Bitcoin holdings and a 99.9% drop in Ethereum holdings between January and February.
- Other assets such as BNB and Solana were reduced by 16.6% and 99%, respectively.
- A significant portion of sold cryptocurrencies was converted into USDC, which increased by 57.5% in Binance's wallets.
Binance's Response
- Binance denied selling any assets, stating the observed changes were due to internal accounting adjustments.
- The exchange assured users that their funds remain secure.
- As of now, Bitcoin is trading at $95,740 (down 2.6% in 24 hours) and Ethereum at $2,600 (down 4.2%).
