Bitcoin Is Moving Exchanges at a Record $1,750 Billion per Month, For each Analytics Firm Glassnode
According to renowned analytics company Glassnode, owners of Bitcoin (BTC) are withdrawing funds from cryptocurrency exchanges at an astonishing rate.
Following the collapse of cryptocurrency exchange FTX, investors in Bitcoin have reportedly taken it upon themselves to seize custody of their BTC hoards.
According to Glassnode, Bitcoin is currently being removed off cryptocurrency exchanges at a rate of over $1.75 billion per month.
“After FTX’s demise, Bitcoin investors have been moving their coins to their own custody at a historical rate of 106,000 BTC each month.
Comparing this to only three other instances
– Apr 2020
– Nov 2020
-June through July 2022.
Glassnode reports that all wallet cohorts, from shrimp to whales, are experiencing significant increases in their BTC balances as a result of Bitcoin flying off of cryptocurrency exchanges.
“The failure of FTX has resulted in a very noticeable change in the behaviour of Bitcoin owners across all cohorts”.
When examining stablecoins, Glassnode points out that after the collapse of FTX, traders rushed crypto exchanges with dollar-pegged crypto assets, indicating that market participants are preparing to buy the drop.
“On November 10, this week also saw one of the most notable one-day stablecoin inflows across all exchanges. Stablecoins worth over $1.04 billion poured into exchanges after FTX failed.
Stablecoin reserves across cryptocurrency exchanges have reached a new all-time high of $41.18 billion, according to Glassnode, as a result of the sudden shift in trader behavior.
Glassnode also concludes
“Overall, it appears that investor holdings are changing.
– The influx of stablecoins into exchanges
– Trustless assets like Bitcoin and Ethereum are leaving the market.
This results in an increase of about $4 billion per month in stablecoins’ “buying power” on exchanges.