Bitcoin Rebounds As Binance Announces Limits On Withdrawals, Leverage
Bitcoin rebounded on Wednesday from the previous day’s lows, after cryptocurrency exchange platform Binance said it would further limit leverage and withdrawals.
The world’s largest cryptocurrency rebounded over 7% on Wednesday to around $39,600 at the time of writing, recovering from Tuesday’s losses. Similarly, ethereum is also trading nearly 5% above yesterday’s levels.
The latest crypto rebound comes as Binance announced it will be scaling back daily withdrawal limits from 2BTC to 0.06BTC for new customers. “To support the ongoing security of all Binance users, new withdrawal limits will be established for those who have completed only Basic Account Verification. This change is effective immediately for new account registrations and will be made effective for existing users in phases starting from [August 4] and completed by [August 23],” Binance explained via Twitter.
In addition, the world’s largest virtual currency exchange is also expected to put a limit on leverage levels on futures accounts for the first 60 days, citing heightened risks associated with futures trading.
The price of bitcoin has been relatively volatile over the past week, reaching a high of $40,000 over the weekend following bullish comments from Tesla CEO Elon Musk and Ark Invest CEO Cathie Wood. Then, on Monday, reports surfaced that e-commerce giant Amazon is mulling delving into the cryptocurrency market, sending bitcoin prices rallying. However, Amazon quickly denied the rumours, sending the token’s price lower.
Information for this briefing was found via Binance. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.