Due to FTX contagion fear, $3 billion worth of Bitcoin was removed from exchanges this week
In the wake of the FTX fallout and scandal, it appears that more investors are opting to self-custody BTC funds. Source: Glassnode. The same Glassnode data shows a daily average of over 3,000 withdrawing addresses over the seven days to Nov. 13. Source: Glassnode. The same Glassnode data shows that there were over 3,000 addresses that were withdrawn per hour over the seven days ending Nov. 13. Chart of Bitcoin exchange receiving addresses. Source: Glassnode/ TwitterAnalysis. The numbers are consistent with rapidly declining BTC reserves across major trading platforms. Analysis of Gox Source: CryptoQuantAnother chart from Coinglass suggested that 177,000 BTC were withdrawn weekly through Nov. 13, which would be approximately $3 billion at today’s price. BTC balance on exchanges chart. Source: CoinglassGlassnode senior analyst Checkmate nonetheless flagged three exchanges in particular with what he called “particularly weird” Bitcoin balance readouts — Huobi, Gate.io and Crypto.com.Concluding a dedicated thread into the topic, he noted that “Exchange balances are best estimate based on wallet clustering. They are more likely than an overestimate to be lower bounds.” “These fund flows between exchanges includes both real customers and FTX/Alameda. Hard to separate, thus looking as relative-to-balance,” he added.Forecasting how the current scenario may play out, Michael van de Poppe, founder and CEO of trading firm Eight, meanwhile said that the worst was likely not yet over.”Probably we’ll have more issues with exchanges coming weeks, but probably also a ton of gossip,” he told Twitter followers at the weekend. Keep calm, stay safe and avoid making emotional decisions. We are in terrible territory, but crypto will emerge stronger.” BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView. The views and opinions expressed here do not necessarily reflect those of Cointelegraph.com. You should do your own research before making any investment or trading decision.