Bitcoin Turned Down Below $28K, Is Binance The Reason?

• The bitcoin trading price has fallen below the $28K mark.
• The average BTC transaction cost reached $19.20.

Bitcoin (BTC), the largest cryptocurrency by market capitalization, has shown a lot of ups and downs in recent days. A few days ago, Bitcoin reached the $30 mark even after the Fed’s interest rate hike. But now BTC’s trading price has fallen below the $28K mark, and it has shown a bearish intent in the last 24 hours.

We've temporarily closed $BTC withdrawals as the #Bitcoin network is experiencing a congestion issue.
Our team is currently working on a fix until the network is stabilized and will reopen $BTC withdrawals as soon as possible.
Rest assured, funds are SAFU.

— Binance (@binance) May 7, 2023

Recently, the world’s largest crypto exchange, Binance, temporarily paused Bitcoin withdrawals on its platform. Binance stated that the decision was based on the congestion issue impacting Bitcoin’s network. And due to the larger volume of pending transactions. Moreover, the exchange added that it is working to fix the withdrawals as soon as possible. Highlighting that earlier day, it stopped withdrawals for one hour.

Bitcoin Transaction Fee Skyrocketed

After the Binance announcement, the trading price of BTC started declining. The price fell from 29K to below the 28K mark. It is not the first time that Binance’s announcement has turned down the BTC price. In March, the crypto exchange suspended deposits and withdrawals, citing technical issues. That results in the BTC price dropping to $28,191, which is the lowest in nearly a week.

At the same time, Bitcoin transaction fees skyrocketed. Currently, the average BTC transaction fee is around $19.20, or 0.00068 BTC, according to BitInfoCharts. Some crypto experts state that the Binance decision to pause withdrawals may have led to the recent price drop of BTC.

At the time of writing, the trading price of Bitcoin is around $27,489.46, with a decline of over 5.16% in the last 24 hours, according to CoinMarketCap.