Crypto stocks fall after Binance halts Bitcoin withdrawals for hours

Monday’s premarket trading saw a decline in shares of blockchain and cryptocurrency-related businesses after Binance temporarily stopped accepting Bitcoin withdrawals due to high volume and increasing transaction costs.

Bitcoin, the most popular cryptocurrency in the world, fell 2% due to the halts, reaching a one-week low of $27,900.

Coinbase (NASDAQ:COIN) Inc., a cryptocurrency exchange, lost 4%, while Bitfarms Ltd., a provider of blockchain farms, declined 4.3%. Along with falling bitcoin prices, the value of cryptocurrency miners such as Riot Platforms, Marathon Digital, and Hut 8 Mining fell by 4.6% to 7.2%.

The biggest cryptocurrency exchange in the world, Binance, halted bitcoin withdrawals for almost three hours on Monday and an hour late on Sunday, claiming there were too many outstanding transactions because it hadn’t paid “miners” enough to record trades on the blockchain.

The business said that its established rates did not account for the recent increase in petrol fees paid to cryptocurrency miners whose processing power executes transactions on the blockchain.

Binance had stated that “our fees have been adjusted to prevent a similar recurrence.”

The company stopped accepting deposits and withdrawals in March due to technical difficulties.