Bitfinex Undergoes Planned Maintenance, Moves Wallet Funds

Bitfinex and Ethereum-based exchange Ethfinex are undergoing planned maintenance on October 4. The event coincides with increased concerns over the potential of Bitfinex to affect the Bitcoin ecosystem by using Tether (USDT) and bot orders.

https://twitter.com/bitfinex/status/1047461223762153472

In addition to noting the potential lack of bank service for both Tether and Bitfinex, skeptics are pointing to a marked change in the wallet structure of the exchange. The first indicator was a sudden inflow of funds into the Bitfinex hot wallet, with smaller inflows of USDT to other exchanges in the past days.

After the latest transaction, the Bitfinex hot wallet now contains more than 198 million USDT, lining up among the top five richest wallets. Binance and Huobi also received additional tranches, as data from the Tether rich list shows.

Additionally, the Tether treasury sent 10 million USDT into the Bitfinex hot wallet, the first intervention since the 50-million tranche on September 21.

The Bitfinex cold wallets are also under scrutiny because of large-scale transactions in Bitcoin and Ethereum for purposes so far unclear. The Ethereum transactions are between known exchange wallets, and it may be a case of Bitfinex just moving its assets for more convenience. The other theory revolves around the need to provide large withdrawals of Bitcoin, which may be abandoning the exchange. The crypto community sees this as a worrying sign given the recent news of the financial troubles of Noble Bank in Puerto Rico.

https://twitter.com/Bitfinexed/status/1047603618046726144

Bitinfo also shows the movements in the Bitfinex cold wallet, with statistics recalling outflows from last October, when BTC prices hovered at lows near $4,300.

So far, the source of additional USDT being loaded up on exchanges is unknown, and their effect is still to be felt in the form of a Bitcoin rally. BTC prices are seen as remaining “stuck” around the $6,500 range.

Additionally, USDT remains under selling pressure on Kraken, with orders pushing the price down to $0.95. This is viewed as an attempt to abandon the token for safer fiat positions.

Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.