Investors pull Bitcoin from exchanges as BTC on CEXs at lowest levels since 2018
According to information from, the number of Bitcoins held on centralized exchanges has dropped to the lowest level since 2018. Glassnode.. After recent issues with Celsius and Babel Finance, users seem to be pulling assets following fear of transmission. The graph below shows a sharp drop in BTC on the exchange on June 13, when Celsius announced that it would suspend its withdrawal.
Why does Bitcoin leave the exchange?
The amount of BTC on the exchange exceeded 2.4 million BTC in 2018 and has never fallen below this milestone until June of this year. It peaked at 3.1 million BTC in May 2020 and has been on a downward trend ever since.
Historically, investors have seen cryptocurrencies leaving the exchange as a bullish indicator. As the balance of assets on an exchange decreases, so does its liquidity and its trading capacity. Many believe that with increasing Bitcoin outflows, investors will move their coins to cold wallets and hoddle them in the long run.
Coinbureau’s cryptocurrency YouTuber Guy recently in light of concerns about certain exchanges Affirmed,
“Now it’s more important than ever to emphasize the importance of * self-management *. Say with me: it’s not your key …
It is not possible to * confirm * the current solvency of all these CeFi lenders. Holding money with them depends on trust. However, cryptography is intended to be * untrustworthy *. No warranty required. You need to have your own coins. “
This topic was also discussed in detail on Twitter recently. space Between CryptoSlate, EAM Crypto, and DefiYieldApp.The unmanaged nature of centralized exchanges was challenged by Enrique EAM encryptionThose who claimed transmission from the collapse of Terra may not be over.
Brad Mills, the host of the MIM podcast, recently Made to remember Believers of the Mt. Gox disaster,
“I learned from the collapse of MtGox that it’s not your key, it’s not your coin,” and “verify without trust.” I’m still here.
You are still early, this bear market is reset. “
Celsius investors will not have access to funds for more than two weeks after the withdrawal is suspended. Keeping Bitcoin in your wallet gives investors complete autonomy over their assets, but depositing cryptocurrencies in exchange is similar to depositing in a bank, but in the government. There is no relief protection.
The asset shortage is increasing as the exchange’s Bitcoin level is less than 2.4 million BTC and there are over 30 million crypto investors who use only Binance. If the demand for Bitcoin continues to increase while the forex balance decreases, it may create a strong setup for price increases.
