Bitcoin's price has been facing increasing selling pressure throughout the past few hours due to recent negative news surrounding the OKEx founder's arrest.
Last night, the house covered the floor OKEx - one of the largest cryptocurrency trading platforms in Asia, along with Huobi , and Binance - was arrested by the Chinese authorities and since then, the exchange has been unable to execute any more withdrawals due to the character being one of the exchange's wallet key holders.
Some investors worry that this is the first shot, opening a new wave of repression in China. Besides, this could be a blow to Bitcoin investors and traders using the platform.
In a recent tweet, an analyst firm said the data shows that there are currently 200.000 BTC locked in the platform:
- glassnode (@glassnode) October 16, 2020
This is a staggering figure, and the effects of whether these assets will be permanently locked or seized by the Chinese government have created some fear among investors.
According to our data, about 200.000 BTC (~ 1.1% of the circulating supply of Bitcoin) is currently held in the OKEx wallet. That means about 2.3 billion USD of BTC is stored in the exchange's wallet
Bitcoin price steady despite the news, but it's unclear how long this stability will last as the situation continues to develop in a negative way.