Users have been taking their Bitcoin off exchanges en masse
As reported by Arcane Research in a recently published tweet, bitcoin investors are taking their stash from crypto exchanges. Glassnode has said that bitcoin balances on exchanges have hit a four-year low.
“Withdrawing Bitcoin like never before”
The Arcane Research team spreads the word about negative exchange net flows they have been noticing since the start of the year.
The tweet cited one possible reason for this: the collapse of the big crypto lenders – Celsius, Babel Finance and Wald – earlier this summer after experiencing problems with liquidity. This is when the biggest withdrawals started compared to the ones that took place before May.
The tweet says that users have been withdrawing Bitcoin from exchanges “like never before.” Besides, Arcane Research mentions that issues with lenders have done serious damage to users and assumed that they might be losing trust in crypto exchanges.
In June, 119,000 BTC were delisted from exchanges. In July, they withdrew 96,000 BTC, and in August, 65,000 BTC have been withdrawn so far.
Before the summer, the biggest amount of BTC that was taken away from exchanges totalled 71,000 coins.
According to Glassnode, the balance of bitcoin on centralized crypto exchanges has hit a four-year low of 2,342,202.837.
