Users have been taking their Bitcoin off exchanges en masse
Bitcoin investors have been moving their stashes off crypto exchanges frantically, as reported by Arcane Research in a recently published tweet. Glassnode has added that the Bitcoin balance on exchanges has reached a four-year low.
“Withdrawing Bitcoin like never before”
The Arcane Research team spreads the word about negative exchange net flows they have been noticing since the start of the year.
The tweet names a likely reason for this: the collapse of large crypto lenders earlier this summer — Celsius, Babel Finance and Vauld — after experiencing issues with liquidity. This is when the biggest withdrawals kicked off compared to those that took place before May.
The tweet says that users have been withdrawing Bitcoin from exchanges “like never before.” Besides, Arcane Research mentions that issues with lenders have done serious damage to users and assumed that they might be losing trust in crypto exchanges.
In June, 119,000 BTC was moved off of exchanges. In July, they withdrew 96,000 Bitcoin, and in August, so far 65,000 BTC have been removed.
Before the summer, the biggest amount of BTC that was taken away from exchanges totalled 71,000 coins.
Hodlers have been moving their precious #bitcoin out of exchanges like never before following this summer’s collapse of major crypto lenders.
These events undoubtedly damaged the lenders’ trustworthiness, but are hodlers also losing trust in exchanges? pic.twitter.com/v4Tr0rNOaS
— Arcane Research (@ArcaneResearch) August 22, 2022
According to Glassnode, the balance of Bitcoin on centralized crypto exchanges has reached a four-year low of 2,342,202.837.
— glassnode alerts (@glassnodealerts) August 21, 2022