Bitcoin price dropped sharply on September 3, revisiting the $ 10,000 band. This decline adventure of BTC has taken many altcoins with it, as can be predicted. Thursday’s impact of the decline signaled on Wednesday is still causing chaos in the markets.
Cryptocurrency exchanges such as Binance, Bithumb and Coinbase were also affected by this decline. While Binance and Coinbase could not be reached for a short time, it is known that police raided Bithumb. The most interesting event seems to have probably happened to the US-based Gemini crypto exchange.
Gemini Is Stuck With Bitcoin
A person using the Gemini cryptocurrency exchange emphasized that he was unable to access his funds, even though he ordered a BTC withdrawal. The user also shared with the relevant article that Gemini has stopped large BTC withdrawals. Jameson Lopp made a statement stating that the exchange’s BTCs may be over.
Lopp claimed that BTC funds in the exchange’s hot wallet may have run out and required a transfer from a cold wallet that does not have an internet connection. This indicates that perhaps a record amount of Bitcoin has been withdrawn from the exchange.
Probably ran out of funds in their hot wallet and need to run over to the cold storage vault in order to re-up. Bitcoin supply held by exchanges continues to decrease. https://t.co/lzhcSuEhJm
— Jameson Lopp (@lopp) September 4, 2020
So why did users start withdrawing BTC? The most obvious reason for the withdrawal of BTC balances in stock exchanges is known as long-term investment. However, the occurrence of such a thing at the time of the fall shows the distrust of the users in the stock markets. Obviously, users think that exchanges can be hacked or have technical difficulties at such moments.
Although Bitcoin is expected to gain a rapid rise after this decline, it is unlikely that this will happen as trust in the stock markets is damaged.