What Does It Mean When Binance Is Down?

In order to protect themselves from another manipulated coin dump, investors tend to spread their coins into other exchanges in the hope that there will always be a strong price. In this way, fewer bitcoins end up in one exchange, which lowers competition for their support and creates fear among trading customers who think they may lose money if bitcoin prices fall. It is this fear that also makes people tend to sell, creating a downward trend at a time when purchasing demand still outpaces vps server bitcoin miners the available supply in markets around the world.

One of the most popular ways in which traders take advantage of this phenomenon has been by hoarding their coins on smaller exchanges such as Bitfinex and Poloniex rather than moving them onto Binance where selling pressure is at its strongest. At least 95 percent of all trading volume at these exchanges comes from trades taking place within 5 minutes either side of 5:00PM EST — causing many traders to assume — incorrectly — simply because it is convenient — that only serious buyers and sellers using high-speed bots are transacting or investing at short notice. The real picture clearly shows both sides working together and coordinating their actions so as not to negatively affect prices and provide greater stability for market participants.

The fact that several platforms exist which simply facilitate users across different exchanges carrying out simple transactions artificially enhancing price stability [24] [25] [26] further reinforces this point. Another piece of information that affects price stability is withdrawals during times such as