Today, Bitcoin (BTC) is experiencing a dip in sentiment with its price trading below $28,000 into the May 8 Wall Street open. Data from Cointelegraph Markets Pro and TradingView suggests that Bitcoin’s market sentiment is being pressured due to it’s current transaction fees hitting the highest levels ever, and the mempool becoming almost 98% full.

Congestion in the Bitcoin blockchain is the primary cause for these effects. This was then further escalated when the world’s largest crypt exchange, Binance, temporarily halted BTC withdrawals, forcing a backlog of transactions. Binance has since cleared the backlog, although BTC/USD continues to remain suppressed. Binance also reported that their own token, Binance Coin (BNB), is also experiencing losses with their 24-hour period down around 2.4%, trading near $315.

The current issues have been met with some criticism, however Binance CEO Changpeng Zhao called the market reaction to the withdrawal pauses “FUD” (fear, uncertainty and doubt), while other traders have reasoned that they are part of a cycle. Some opted to view the situation optimistically, with Michaël van de Poppe, founder and CEO of trading firm Eight, predicting that an uptick may soon ensue.

However, it is not the first time that Binance has been the center of attention for Bitcoin’s price, as similar effects were seen back in late March. It is not difficult to realize that the current issues may result in similar effects, but the outcome is yet to be seen. In the meantime, traders are beginning to eye potential targets for a long entry amid a continued downtrend and will be looking out for further developments to happen.



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