The collapse of Sam Bankman-Fried’s FTX exchange in November 2022 marked a pivotal point in the Bitcoin deposit and withdrawal landscape. The incident pushed the Bitcoin price below its cycle low of $16,000. The collapse has deceived many and sent cryptocurrency confidence to an all-time low.
In the aftermath of the FTX failure, a divergence in Bitcoin deposits and withdrawals is now being observed. This change shows that investors are pushing their coins away from exchanges, which is fueled by declining trust in these platforms. This is the first time Bitcoin withdrawals have exceeded deposits, and the trend continues.
While the trend is the aftermath of an unfortunate event, it is certainly encouraging as it demonstrates investors’ cautious and conscious approach to self-custody and thoughtful digital asset management.
In this article, Bitcoin deposits were restructured in the aftermath of the FTX exchange collapse, and withdrawals were first made on CryptoSlate.