$3 billion in Bitcoin left exchanges this week amid FTX contagion fears

1 year ago

Bitcoin (BTC) investors are withdrawing funds from exchanges astatine a complaint not seen since April 2021 with astir $3 cardinal successful Bitcoin withdrawn implicit the past 7 days.

New information from on-chain analytics steadfast Glassnode shows the fig of wallets receiving BTC from speech addresses deed astir 90,000 connected Nov. 9.

Exchange users aftermath up to self-custody

Amid ongoing turmoil implicit the bankruptcy of large speech FTX, concerns person heightened among speech users implicit information of funds.

Commentators person upped proposal to debar custodial wallets and instrumentality power of cryptoassets, and regulators are expanding scrutiny of the crypto manufacture en masse.

On-chain figures suggest that a ample fig of hodlers person opted for non-custodial wallets implicit the past week.

The fig of withdrawing addresses saw a immense spike connected Nov. 9, this surpassing the regular highs for some May and June this twelvemonth erstwhile BTC terms enactment past saw important downside pressure.

For Nov. 12, the latest day for which information is available, withdrawing addresses inactive totaled implicit 70,000.

The aforesaid Glassnode information gives an hourly mean of implicit 3,000 withdrawing addresses implicit the 7 days to Nov. 13.

Analysis: BTC reserves whitethorn not archer full story

The numbers necktie successful with what appears to beryllium rapidly-declining BTC reserves crossed large trading platforms.

While the velocity of the driblet suggests that the existent equilibrium tally whitethorn beryllium hard to corroborate astatine present, information from chap on-chain analytics assets CryptoQuant puts wide speech reserves astatine their lowest since February 2018.

CryptoQuant tracks a full of 38 exchanges, including those with reported fiscal problems specified arsenic FTX and Kucoin.

Another chart, this clip from Coinglass, suggested 177,000 BTC successful play withdrawals done Nov. 13 — a U.S. dollar worth of astir $3 cardinal astatine today's price.

Glassnode elder expert Checkmate nevertheless flagged 3 exchanges successful peculiar with what helium called “particularly weird” Bitcoin equilibrium readouts — Huobi, Gate.io and Crypto.com.

Concluding a dedicated thread into the topic, helium noted that “Exchange balances are champion estimation based connected wallet clustering. They are much apt to beryllium a little bound than an overestimate.”

“These money flows betwixt exchanges see some existent customers + FTX/Alameda. Hard to separate, frankincense looking arsenic relative-to-balance,” helium added.

Forecasting however the existent script whitethorn play out, Michaël van de Poppe, laminitis and CEO of trading steadfast Eight, meantime said that the worst was apt not yet over.

“Probably we’ll person much issues with exchanges coming weeks, but astir apt besides a ton of gossip,” helium told Twitter followers astatine the weekend.

“Stay safe, beryllium calm and don’t marque affectional decisions. We’re successful unspeakable territories, but crypto volition travel retired of this stronger.”

BTC/USD was trading astatine astir $16,500 astatine the clip of writing, information from Cointelegraph Markets Pro and TradingView showed.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.

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