Industry Continues to React to OKEx Freezing Bitcoin Withdrawals

Nick Chong

4 years ago

2 mins read

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Yesterday, leading Bitcoin exchange OKEx revealed that it had frozen withdrawals of all cryptocurrencies, from Bitcoin to the altcoins it supports. The firm said one of our private key holders is currently cooperating with a public security bureau.”

OKEx News Doesn’t Hurt Bitcoin Trend

While the news was notable for Bitcoin on many levels, the price of BTC was relatively resolute in the face of this event. In fact, from the time the news was released to the local lows in the two hours after it was shared, the drop that took place measured 2.5% at its worst.

Many in the space commented that if this was 2017 or 2018, the responding move for Bitcoin would have been 10-20%.

This is a trend that many analysts have noted over recent weeks: negative news has had a decreasingly notable impact on Bitcoin’s trajectory.

Many see this as a sign of two things: a maturing market and an underlying bid to the Bitcoin price that is keeping prices aloft. The latter is especially notable as it suggests that once there is positive news, the price of Bitcoin will appreciate even faster than it has. It’s worth noting that much of the recent price action is not a byproduct of news events but rather, correlations to legacy markets.

Chart of BTC's price action over the past few months with annotations of notable news events in the crypto space from crypto trader Stillman. Source: BTCUSD from TradingView.com

What Exactly Is Going On?

While OKEx has maintained the story it mentioned previously, there has been much speculation online as to what exactly is going on at the exchange.

Crypto market maker “I Am Nomad” is confused as to what exactly is going on, speculating that not all may be as it seems.

Whatever the case, company CEO Jay Hao says that all funds are secure on the platform. This should be a relief for users that were worried about losing Bitcoin due to this situation.

All operations @OKEx except digital asset/cryptocurrency withdrawals remain unaffected.

All your funds and assets are safe.

The investigation concerns a certain private key holder’s personal issue only. Further announcements will be made.

— OKX Intern (@okx_intern) October 16, 2020

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

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