Binance CEO Denies All Media Reports Claiming Binance Bought 101,266 Bitcoin On The Dip

Binance CEO Denies All Media Reports Claiming Binance Bought 101,266 Bitcoin On The Dip

Binance CEO Refutes Claims That The Exchange Spent $2 Billion On Buying The Bitcoin Dip.

CEO Changpeng Zhao commonly known as CZ has clarified that Binance didn’t buy any Bitcoin over the weekend.

Over the weekend, a few news websites went all out to claim that the Binance exchange was buying the Bitcoin dip. This was at a time was BTC’s price had fallen below the $20k mark. Apparently, the reports cited an instance where Binance transferred around 101,266 BTC to a cold wallet. The exchange doesn’t deny transferring the coins but refutes any suggestion that it bought the dip.

Cold Wallets

Crypto cold wallets have been a relatively popular option for crypto storage, especially by whales or top exchanges. Basically, cold wallets are wallets that are kept offline. They’re mainly in the form of hardware devices that can be plugged into a computer.

These are different from hot wallets that are kept online with an active internet connection. For example, trading taking place on exchanges is on hot wallets. While, exchanges mostly keep their funds in cold wallets as security away from the internet to avoid any hacking attempts.

What Happened?

According to a recent tweet by Binance CEO CZ, the exchange was merely transferring its BTC holdings to a cold wallet due to more users buying the crypto on the exchange. Granted, crypto investors are known to accumulate more holdings during downturns, and this may have been the case when BTC dropped to below $20k and $19k over the weekend.

“Another wrong article. When cold wallet increases, it means more users deposited to #Binance.”

As a matter of fact, the drop caused a buzz in the crypto community, especially crypto Twitter, calling for the bottom. It’s safe to assume that a lot of investors moved in to accumulate, and this gives credence to CZ’s explanation.

Bitcoin Price No Longer Under $20k

While the weekend, especially Saturday, was a painful moment for Bitcoin, the crypto seems to have gathered its strength and made its way back up to the $20k range before pulling back to just a little under $20k. Bitcoin is currently trading at $19,903.

Download our Android app, never to miss the latest news

Get it on Google Play

Original Source : thecryptobasic.com

Want to know how to start investing in Cryptocurrencies and Stocks? Click here and get more information about the top investing platform available.

Want to receive the latest stock and cryptocurrency news and investing ideas that can help you make money ?! Subscribe to our newsletter. Enter your email below and hit the subscribe button.

Want to know how to start investing in Cryptocurrencies and Stocks? Click here and get more information about the top investing platform available.

If you want professional consultation regarding stock or cryptocurrency investing leave your information below and experts from our trusted partners will reach out to you

Subscribe

* indicates required