Binance's Congestion Cataclysm: Bitcoin, Ether, PEPE, And SUI Caught In The Crossfire

Bitcoin BTC/USD value declined Monday on the heels of a weekend slump, as one of the largest global crypto exchanges reported congestion within the network.

CoinGecko data shows a 4% decrease in Bitcoin's price, hitting $27,900, with a nearly 4% drop since Sunday.

Meanwhile, Ether's ETH/USD value fell over 3% on Monday, reaching $1,867.

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What Happened: Binance tweeted Sunday that the Bitcoin network faced a "congestion issue." Consequently, the exchange temporarily halted Bitcoin withdrawals until the network's stability was restored.

However, some individuals within the market argue that the Bitcoin network is stable, and Binance should have anticipated a high-fee environment for Bitcoin transactions.

SEBA Bank's Yves Longchamps told Benzinga that Bitcoin has regained its safe haven status in the face of macroeconomic uncertainty and with network activity reaching an all-time high, daily transaction volume and hash rate have increased.

Why It Matters: The current market sentiment for Bitcoin appears bullish, as the cryptocurrency approaches the psychologically significant $30,000 mark. Meanwhile, near-term support on the downside stands at $28,600.

Guneet Kaur, a Research Scholar of Digital Currencies at the University of Stirling, said the market is currently being driven by a variety of factors, including regulatory concerns, institutional adoption, and macroeconomic factors.

The recent increase in Bitcoin's price may be attributed to renewed institutional interest and increased demand from retail investors, however, concerns over regulation and environmental impact continue to weigh on the market. "Overall, the market remains volatile, and investors should proceed with caution and maintain a long-term perspective," she said.

Meanwhile, meme coin PEPE PEPE/USD, which increased its market capitalization to over a billion dollars in the last week, is currently trading down about 28% and its market cap has nosedived below $900 million over the weekend.

Other altcoins like the Sui SUI/USD token, Fantom FTM/USD, and Lido DAO LDO/USD are down 11%, 9%, and 8%, respectively.

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