Take a fresh look at your lifestyle.

Major Cryptocurrency Exchanges Record High-Volume Bitcoin Withdrawals Amid Bull Run



The cryptocurrency market has been buzzing with activity in recent days due to rising bitcoin and altcoins prices. One such activity that has gone unnoticed is the movement of bulk bitcoin from exchanges. Transactions on the blockchain show that 92,085 bitcoins were withdrawn from major cryptocurrency exchanges in the last 30 days.

According to Viewbase, this number represents about 6% of the bitcoin balance on these exchanges within the term. Exchanges classified according to their users' bitcoin holdings are Coinbase, Huobi, Binance, Kraken, OkEX, Bitfinex, Bitflyer, Bittrex, Coincheck, Gate.io, Bitstamp, Poloniex, and BTC.top.

Coinbase has seen the biggest drop in the number of bitcoin users. The exchange that reportedly holds the most bitcoins for users has seen its user holdings drop from 973,000 bitcoins in February 2020 to 805,000 bitcoins today. Huobi users have withdrawn around 2,085 bitcoins in the last 30 days, while Binance users have withdrawn 2,073 bitcoins in the same period.

The massive withdrawal from exchanges is the complete opposite of what many analysts expect in today's market. You have raised many questions that beg to be answered, the most popular being the reason behind these withdrawals. Could it be institutional investors trying to avoid the risk of leaving their bitcoins on exchanges or thousands of retail traders suddenly becoming interested in cold storage methods?

Perhaps more bitcoin holders are losing faith in the ability of centralized exchanges to keep their funds safe at a time when hackers are likely to be in an uproar.

It is also possible that the withdrawals are a strategy of the whales to increase the amount of illiquid bitcoins. Statistics show that around 78% of the total supply of bitcoins is not liquid. This means that only about 4.2 million bitcoins are liquid and in circulation. By increasing the amount of illiquid bitcoins, they decimate the amount of bitcoins in circulation. The shortage caused by this will cause a price increase.

Coinbase still holds its place as the largest exchange in terms of bitcoins held ($ 37 billion) followed by Huobi ($ 10.8 billion), Binance ($ 10.2 billion), Bitfinex ($ 8.86 billion), Kraken ($ 6.65 billion) and OkEX ($ 2.79 billion).


Leave A Reply

Your email address will not be published.