Major cryptocurrency exchanges Binance and Bybit have reportedly started suspending withdrawals as the fall in cryptocurrencies accelerates. This news comes after a short power outage Earlier this week, Binance announced that the exchange was due to a technical issue, offering traders a quick reset after a volatile development in the crypto market.
According to reports, Binance resumed withdrawals after the issue was resolved, but the disruption continued for about 20 minutes. At the time, online chatter suggested users were rushing to withdraw their funds as crypto prices fell.
At this time, the exchange first reported the issue in a post on X, telling users: “We are aware of some technical issues affecting withdrawals on the platform. Our team is already working on a fix and the service will be resumed as soon as possible.”
Social media withdrawal tests Binance as Bitcoin plummets
Binance and Bybit have been in the spotlight this week as market turmoil and social media campaigns led to temporary withdrawal suspensions and renewed investor concerns.
This follows a devastating situation for cryptocurrencies, with Bitcoin plummeting by more than 13% on Thursday, dropping below $64,000 to its lowest level since October 2024, accelerating its steep decline.
The token is down nearly 50% from its all-time high last year, wiping out all the gains from President Trump's second term. Investors were optimistic that the administration's crypto-friendly policies would boost digital asset prices.
While digital assets are nowhere near the $19 billion washout that followed President Donald Trump's China tariffs, this episode once again showed how quickly deleveraging can occur when sentiment changes.
Binance did not explain exactly why the suspension occurred, so users focused only on what it meant for them. Withdrawals resumed once the platform stabilized.
A few hours ago, a number of posts on X urged traders to withdraw their funds from Binance, briefly spooking the market and reigniting old concerns about the exchange's safety. However, on-chain data showed something different. Binance account balance is actually increasing, meaning there are more deposits than withdrawals.
Binance co-founder He Yi explained that the withdrawal message was an organized push from some parts of the community. He stressed that such waves of withdrawals are useful as stress tests, revealing how the system performs under pressure. Yi also warned that rushing blockchain transfers can lead to costly mistakes, and recommended self-custody options such as Binance Wallet, Trust Wallet, and Hardware Wallet for added peace of mind.
“Although the number of assets in Binance addresses has increased since the start of the campaign, we believe that initiating regular withdrawals from all trading platforms is a very effective stress test,” Yi said in a post on X.
Zhao denies rumors as Binance reaffirms liquidity strength
The Binance turmoil has reignited debate like never before, with some users likening the exchange to the FTX collapse in 2022. Co-founder Changpeng Chao dismissed accusations that Binance was dumping $1 billion in an attempt to plummet the price of Bitcoin, calling it “imaginative FUD.”
He said the funds in question belong to users, not Binance. but Binance values transparency to maintain trust. As of January 2026, Binance alone holds approximately $155.64 billion in reserves, further solidifying its identity as the industry's largest liquidity pool, based on CoinMarketCap's exchange reserve rankings.
