Cryptos’ Market Cap Falls Below $1 Trillion, Binance Suspends BTC Withdrawals

Amid a wider market rout, the total market capitalization of cryptocurrencies has fallen below $1 trillion, levels not seen since February 2021.

The combined market capitalization of cryptos has fallen to $969 billion, according to data from Coinmarketcap, a drop of about 200% from the market’s all-time high market capitalization of about $3 trillion, seen last November.

The largest digital currency Bitcoin (BTC) is currently trading at $22,900, down about 18% compared to the previous day and about 30% in the last week and its market capitalization has fallen to about $455bn from its peak of $1.3 trillion.

BTC had made an all-time high of $69,000 last November.

The second-largest digital currency, Ethereum, has fallen over 21% in a day and is currently trading at $1190. Its market capitalization has fallen to $147bn.

Meanwhile, the CEO of crypto exchange Binance Changpeng Zhao has announced that the exchange is temporarily pausing BTC withdrawals.

“Temporary pause of $BTC withdrawals on #Binance due to a stuck transaction causing a backlog. Should be fixed in ~30 minutes. Will update. Funds are SAFU,” Zhao tweeted.

SAFU is a term that refers to Binance's trading protection fund, the Secure Asset Fund for Users (SAFU), which was built during the previous bear market.

In a follow-up tweet, he added that while this was only impacting the Bitcoin network and BTC can still be withdrawn on other networks like BEP-20, the withdrawals would be paused for longer than his initial estimate.

In an official statement, crypto exchange Binance stated that a batch of BTC transactions got stuck due to low TX fees, resulting in a backlog of BTC network withdrawals and as a result, withdrawals on the Bitcoin network have been temporarily suspended on Binance.

“BTC withdrawals on other networks (BEP20 & ERC20) remain open as normal,” the statement added.