OKEx recorded a high number of bitcoins withdrawal after the cryptocurrency exchange activated the withdrawal feature for the first time in five weeks
OKEx has reactivated its withdrawal features to users, and it led to a huge outflow of bitcoins within a few hours. According to blockchain analytics firm CryptoQuant, nearly 3,000 bitcoins were withdrawn from OKEx after the cryptocurrency exchange opened its doors for the first time in five weeks.
Amongst the 2,822 coins withdrawn, nearly 500 were moved to rival cryptocurrency exchange Binance and around 400 were transferred to other cryptocurrency exchanges. Furthermore, some coins were transferred to 54 direct accounts or addresses as investors preferred to store their own Bitcoin.
The movement of bitcoins to other cryptocurrency exchanges could be a sign of declining confidence in OKEx after it disabled its withdrawal feature for five weeks. The cryptocurrency exchange suspended withdrawals on 16 October after one of the company’s key holders was taken into custody by authorities to help with an investigation.
Back then, OKEx explained that they have been out of touch with the concerned private key holder. Hence, they can’t authorise transactions on the platform.
After five weeks, OKEx announced that users can now withdraw their cryptocurrencies from the platform. “OKEx is expected to open withdrawals at 8:00 (UTC) on 26 November 2020”, the blog post added.
Recent Bull Run attributed to OKEx withdrawal suspension
Some proponents within the cryptocurrency space have attributed the recent Bull Run to the suspension of withdrawals on OKEx. Bitcoin rose to a 35-month high above the $19,000 mark. According to the theory, the supply shortage of Bitcoin due to OKEx’s suspension of crypto withdrawals played a role in pushing the BTC price past the $19,000 region.
This theory is understandable because the price rally began after OKEx’s decision. However, some crypto experts refute the theory as they don’t see a strong link between OKEx’s suspension and Bitcoin’s price rally. According to some analysts, OKEx’s suspension and Bitcoin’s rally is purely coincidental.
Bitcoin is currently down by 3.5% over the past 24 hours to trade just above the $17,000 region. The leading cryptocurrencies are trading in the red-zone except for Stellar Lumen (XLM), which continues to perform excellently in the past few days.