The world’s largest cryptocurrency exchange, Binance, has temporarily suspended spot trading due to a technical issue, leading to a brief drop in Bitcoin’s price. Binance CEO Changpeng ‘CZ’ Zhao confirmed the issue and assured that the team is working on resolving it as soon as possible.

Technical Issue Impacts Binance Spot Trading

Binance announced the suspension of spot trading on their platform in a statement, saying, “We are aware of an issue impacting spot trading on Binance. All spot trading is currently temporarily suspended as we work to resolve this as soon as possible.” Updates on the issue will be shared through the Binance Twitter account.

Changpeng Zhao, Binance CEO, echoed the statement in a separate announcement, emphasizing the team’s efforts to resolve the issue quickly. The exact nature of the technical issue remains undisclosed at this time.

Withdrawals Frozen for Security Reasons

As a result of the suspension, withdrawals on the platform have also been temporarily halted. When asked about the reason behind this, Zhao explained, “The state of orders in the matching engine may affect available funds for withdrawal in user accounts. Our withdraw logic checks with the matching engine for security.”

Bitcoin Price Reacts to Binance News

The suspension of spot trading on Binance led to an immediate impact on the cryptocurrency market. Bitcoin’s price briefly shed $700 upon the news release, with the cryptocurrency currently trading at $28,088.39. This sudden drop highlights the sensitivity of the market to changes and disruptions in major trading platforms.

“When the biggest exchange halts trading, prices won’t move much. If it moves on smaller exchanges, when #Binance comes back, our deeper orderbook will bring the price back, causing those guys to lose money. Traders know this.” Zhao explained on Twitter.

This is a developing story.

This article is published on BitPinas: Binance Temporarily Halts Spot Trading: Bitcoin Price Drops

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.

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