Exchanges See Bitcoin Withdrawals Exceed Deposits For Three Consecutive Months
An analyst on explained that the total number of Bitcoin exchange withdrawals has been more than the deposits recently. The number of deposits and withdrawals and the number of such transactions are referred to here. All transfers on the network that go from a self-custodial wallet to a central exchange entity would count as deposit transactions, while those that go the opposite way would be withdrawals.How the two metrics have changed in value in recent years | Source:As displayed in the above graph, the Bitcoin exchange withdrawal transactions have been higher than the deposit transactions for around three months. This streak is a record for the cryptocurrency, as deposits have usually surged back above withdrawals before long whenever this pattern forms.
The second explanation may be that the investors have become more cautious of central entities, so they opt for the security that self-custodial wallets provide. This would make sense in light of several bankruptcies the sector has seen during the past year, where known names like FTX have gone down.
Finally, the analyst notes, “given the recent regulatory changes in the US, investors prefer to keep their assets off exchanges to avoid potential complications.” Binance, the largest exchange in the world in terms of trading volume, has particularly been under fire lately.
Another analyst has looked at the individual exchange reserves (the total amount of Bitcoin sitting in a platform’s wallets) of Binance and Coinbase in a CryptoQuant Quicktake , to see how they have shifted over the years.
Looks like the value of the metric is red currently | Source:Binance had been seeing growing Bitcoin reserves for a good chunk of the past year (despite factors like the bear market), but the exchange has been seeing net withdrawals recently. Coinbase, on the other hand, has been seeing withdrawals for quite a while now, implying that the platform has constantly been bleeding coins.
The exchange continues to see outflows | Source:
BTC Price
Bitcoin has remained stagnant recently as the asset is still priced around the $25,900 level.BTC continues to consolidate sideways | Source: