Coinbase addresses rumors of $5,000 withdrawal limit

abdelaziz Fathi

Cryptocurrency exchange Coinbase has denied rumors that it imposed a $5,000-per-week limit on Bitcoin withdrawals, quashing claims that began circulating on social media.


The speculations took root after a user’s post on X claimed such a limitation on October 24th. The controversial post attracted massive attention, garnering over 250,000 views, with a high engagement rate reflected by its 420 retweets and close to 2,000 likes.

Coinbase promptly addressed the situation, with a spokesperson clarifying that the allegations were baseless and confirmed that no such policy was in place, restricting Bitcoin withdrawals when converting to Coinbase cash balances.

Coincidentally, this rumor surfaced when major crypto exchanges, including Coinbase, saw massive outflows on the same date, with Bitcoin’s price touching the $35,000 mark. Such outflows, historically, are perceived as bullish indicators, hinting at traders moving their assets to safer storage in anticipation of a price hike.

Analytical data from CoinGlass pinpointed Binance as the top exchange witnessing the most considerable outflow of over $500 million within a day. and OKX followed with outflows of $49.4 million and $31 million, respectively.

The recent surge in Bitcoin’s price also led to the liquidation of $400 million worth of short positions, with 94,755 traders experiencing derivative positions being liquidated in the last 24 hours. The largest single liquidation order occurred on Binance, amounting to $9.98 million.

While past market dynamics have often associated extensive outflows with fears of a “bank run”, especially in the wake of events like the FTX collapse, the present scenario seems more aligned with a bullish sentiment. The prevailing trend suggests that investors are in a hoarding mode, anticipating an upward trajectory in asset prices, a behavior often noted during periods of recovery after prolonged market lows.

In the past 24 hours, the total cryptocurrency market capitalization increased by more than 7.3% to reach $1.25 trillion, marking its highest value since April. This sudden upswing is thought to be driven by increased speculation regarding the introduction of a traditional Bitcoin exchange-traded fund (ETF).

Meanwhile, a report from Law360 revealed that the SEC’s decision not to challenge the reversal of its previous rejection of Grayscale Investments’ proposal for a Bitcoin exchange-traded fund suggests that the agency is preparing for the green light on several Bitcoin-related ETFs. An approval of an ETF could inflate the crypto market cap by at least $1 trillion, potentially propelling the price of the cryptocurrency to $73,000.

Read this next

Digital Assets

Flare Labs Begins Testing FAssets on Coston Testnet Paving Way for Non-Smart Contracts to Flare

Flare Labs has introduced FAssets on the Coston testnet, enabling the integration of non-smart contract tokens like BTC, XRP, and DOGE into the DeFi ecosystem.

Digital Assets

Philippine bars access to Binance, citing unregistered operations

The Philippines’ Securities and Exchange Commission (SEC) is moving to block access to Binance due to regulatory concerns, citing the platform’s operation without proper registration and authorization in the country.

Digital Assets

FTX cleared to sell investments in Grayscale and Bitwise funds

Bankrupt cryptocurrency exchange FTX has received approval from the bankruptcy court to start selling its stakes in digital trusts managed by Grayscale Investments.

Digital Assets

Nexo launches Dual Investment for yield earning and price prediction

“Dual Investment revolutionizes how users engage with BTC and ETH, offering a flexible, intuitive, yet sophisticated platform for predicting asset price movements, all while securing high yields.”


Aquis Stock Exchange goes live with cloud-based matching engine powered by AWS

“By running on AWS, the Aquis Stock Exchange is driving transformation across the capital markets industry while continuing to enhance the scalability, functionality and innovation that will benefit its members and stakeholders in an environment where security and resiliency are our highest priority.”


Options Technology certified as Microsoft Azure partner for Digital & App Innovation

“Securing our fifth Microsoft Solutions Partner status in less than 12 months is a testament to our commitment to innovation, excellence, and the highest industry standards. We are not only keeping pace with the evolving landscape of cloud technology but leading the way in shaping its future.”

Retail FX

N26 reports €213M in net loss, integrates stock and ETF

European digital bank N26 has shared its strategic roadmap for the next few years, underlining both its growth trajectory and financial targets. The announcement included key financial results for 2022 and projections for the coming years.

Digital Assets

Canadian ownership of crypto assets fell by 23%, study finds

Concerns about risks, volatility, lack of government guarantee, and potential fraud or hacking deterred others from buying crypto.

Institutional FX

Fortex adds GBE Prime to liquidity offering

“This collaboration enhances our liquidity distribution capabilities, offering our clients improved pricing, order execution, and risk management. We look forward to the positive impact this integration will have on our clients.”