Bitcoin (Bitcoin) has been flooded from exchanges over the past week as users become wary of security and regulatory scrutiny.
Data from on-chain monitoring resources coin glass shows a significant drop in BTC balances, especially on US exchanges.
US Exchanges Lead BTC Outflow
triggered by FTX Scandalefforts to draw attention to the risks associated with custody of BTC have stepped up on social media.
Meanwhile, the aftermath of FTX is just beginning and investor fears continue to mount as regulators plan investigative actions and increase interest in cryptocurrencies as a whole.
The data shows that the trends are still valid when it comes to exchange withdrawals. Over the past seven days, net withdrawals have exceeded deposits on virtually every major platform.
The biggest weekly drop comes from Gemini, down nearly 30,000 BTC, followed closely by Kraken, Binance and Coinbase.
Unsurprisingly, US exchanges have seen particularly high withdrawals, with jurisdictions set to play a key role in the upcoming FTX narrative.
Member of Parliament this week announced We listened intently to former CEO Sam Bankman-Fried about what happened at the exchange. reportedly It will be handed over from the Bahamas to the United States.
“The FTX collapse took a toll on over a million users, many of them everyday people who invested their hard-earned savings into the FTX cryptocurrency exchange, all in a matter of seconds. has disappeared,” said the chairman of the House Financial Services Committee, which is hosting the hearing. quoted by mainstream media.
Coinglass figures, on the other hand, show that even exchanges that have not touched FTX have been unable to stem the outflow.
In total for the week, 134,000 BTC left the books. This equates to about $2.2 billion at current prices, with about $1.5 billion coming from US platforms.
‘Severe financial difficulties’
as Cointelegraph reportwhile exchange withdrawals surged, the average BTC hodler stayed significantly below the surface, so he was not inclined to sell.
Data from an on-chain analytics company glass node Check this. The average long-term holder (LTH) — an entity that holds coins for at least 155 days — is 33% in the red.
This is largely unprecedented and is only matched by the 2018 bear market pit where the average aggregate reached 36%.
An accompanying comment described LTH as facing “serious financial difficulties.”
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and trading movements involve risk. You should do your own research when making a decision.