- Bitcoins are increasingly being removed from exchanges and stored offline.
- Because Bitcoin dropped below $15,682 on Thursday, the bear hold became tighter.
Investors’ faith in centralized cryptocurrency exchanges has been severely shaken by the demise of FTX. The safety of users’ funds has reemerged as a topic of discussion in the wake of the ensuing financial turbulence. And stories about the failing crypto exchange using user cash to support reckless wagers.
Some people paid a high price because they let go of their coins. Subsequently, reports of widespread exchange withdrawals have surfaced. Over the previous few days, over 80,000 BTC have reportedly been transferred out of exchange wallets, as reported by CryptoQuant. According to the statistics, Bitcoins are increasingly being removed from exchanges and stored offline.
Investors Losing Trust
According to the on-chain data analyzed by CryptoQuant, more than $5 billion worth of stablecoins were withdrawn from cryptocurrency exchanges. The volatility caused by the FTX issue seems to have reached its highest point since June 15.
However, the number of transactions where stablecoins were withdrawn from exchanges jumped to almost 57,900 from only 7,016 a week earlier. Ledger, a company that makes hardware wallets for cryptocurrencies, saw “few scalability challenges” after server disruptions due to the large withdrawals from crypto exchanges.
Another red flag for Bitcoin has been raised by on-chain data. Bitcoin investors who made their purchases within the previous three to six months are moving their assets to cryptocurrency exchanges, which might cause the price to fall near $15,000. Because Bitcoin dropped below $15,682 on Thursday, the bear hold became tighter.
The FTX-Alameda issue has continued to weigh on the larger cryptocurrency market. With crypto lender BlockFi suspending withdrawals and FTX US experiencing trading and withdrawal problems, the FTX plague has begun to spread.
