Cryptocurrency outflows from crypto exchanges break records

After the FTX crash, investors are increasingly deciding to withdraw their digital assets from cryptocurrency platforms, according to Glassnode analysts. Experts claim that the market has faced a similar outflow of BTC only three times — in November 2020, April 2020, and June/July 2022.

Following the collapse of FTX, #Bitcoin investors have been withdrawing coins to self-custody at a historic rate of 106k $BTC/month.

This compares to only three other times:
— Apr 2020
— Nov 2020
— June-July 2022https://t.co/92aYVYU4Yt pic.twitter.com/em7CsDBWUf

— glassnode (@glassnode) November 13, 2022

Indeed, more than 59,000 bitcoins worth about $ 1 billion have been withdrawn from Binance so far. Cryptocurrency exchange Coinbase has «lost» 69,000 bitcoins worth $ 1.15 billion. Gemini, Kraken, OKEx, and ByBit have withdrawn about 45,000 BTC. Bitfinex, on the other hand, showed an increase of 5,700 bitcoins. Huobi also saw a slight increase, as did Bitstamp. In total, 170,000 bitcoins worth about $ 3 billion were withdrawn from exchanges last week as a result of the massive outflow.

The outflow of bitcoins from exchanges to wallets usually signals a rapid growth of the BTC rate in the long run. However, analysts believe that this scenario is now more likely the result of a decline in confidence in centralized crypto exchanges. Glassnode experts point out that the outflow of bitcoins has led to «positive changes in the balance of wallets of all types of investors — from shrimp to whales.»

According to experts, since November 6, all bitcoin wallets have been affected by the change in balances. The total volume of the first cryptocurrency on shrimp wallets with a balance of less than 1 BTC increased to 33,700 bitcoins. The volume on whale wallets with a balance of more than 1,000 BTC increased by 3,600 bitcoins.

As a reminder, Чанпен Чжао" href="https://noworries.media/biography/chanpen-chzhao/" data-bio-id="3681">Changpeng Zhao, CEO of the largest cryptocurrency exchange Binance, urged users to store cryptocurrency on personal crypto wallets. In his opinion, this is critically important when the cryptocurrency market is going through a difficult period. His opinion is also shared by Сейлор" href="https://noworries.media/biography/majkl-dzh-sejlor/" data-bio-id="3672″ data-wpel-link="internal">Michael Saylor, chairman of MicroStrategy’s Investment Committee.