TLDR
- Binance and Bybit temporarily suspended withdrawals amid a significant selloff in the crypto market.
- Binance resolved its technical difficulties within 20 minutes, restoring withdrawals after a brief pause.
- Bybit faced similar issues with withdrawal freezes but did not provide specific details about the cause.
- Bitcoin dropped over 13% and fell below $64,000, marking its lowest point since October 2024.
- Binance’s reserves remain strong with over $155 billion, reinforcing its position as the largest liquidity provider in the market.
Binance and Bybit have reportedly suspended withdrawals in the wake of an escalating crypto market selloff. This decision follows technical difficulties earlier this week that affected Binance’s platform. Despite a brief pause, Binance restored withdrawals after resolving the issue, which lasted about 20 minutes.
Binance Suspends Withdrawals Amid Market Pressure
Reports show Binance initially suspended withdrawals due to technical issues affecting the platform. The exchange addressed the problem on X, informing users of the ongoing disruptions. Binance’s team quickly worked to resolve the issue and assured customers that services would resume promptly.
Once the issue was fixed, Binance restored withdrawals. This interruption happened during a critical period, as many users rushed to withdraw funds due to plummeting crypto prices. During the outage, market sentiment was shaky, but Binance managed to stabilize the situation and regain user trust.
Despite the technical difficulties, Binance’s system experienced increased deposits, not withdrawals, according to on-chain data. This suggested that more users were choosing to deposit funds, contrary to initial fears of a mass exodus. Binance co-founder He Yi clarified that the disruption stemmed from technical causes and not from any malicious intent.
Bybit Faces Similar Withdrawal Freeze
Bybit, another major cryptocurrency exchange, also faced similar issues with withdrawals during the market turbulence. While the exchange did not provide a detailed explanation, it became clear that the technical difficulties affected multiple platforms. Much like Binance, Bybit temporarily halted withdrawals as part of efforts to resolve the issues quickly.
The platform reassured users that services would resume as soon as possible. Bybit has not disclosed whether the suspension was related to the broader market conditions or purely technical difficulties. However, the halt raised concerns about platform reliability during times of market instability.
Crypto Market Faces Selloff as Bitcoin Falls Below $64,000
The broader crypto market has been in turmoil, with Bitcoin falling more than 13% and dipping below $64,000. This marked the lowest price point for Bitcoin since October 2024, contributing to investor anxiety. The selloff erased much of the gains from the previous year, pushing many traders to question the stability of crypto markets.
Despite the downturn, Binance has maintained its position as the industry’s largest liquidity provider. According to CoinMarketCap, the exchange holds approximately $155.64 billion in reserves as of January 2026. Changpeng Zhao, Binance’s CEO, rejected accusations that the exchange was orchestrating a sell-off, calling the claims “imaginative FUD.”
While users raised concerns over the freeze on withdrawals, Binance emphasized the importance of self-custody measures. Yi advised users to consider using Binance Wallet, Trust Wallet, or hardware wallets to safeguard assets.
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