Investors Withdrew 17k BTC from Exchanges Within a Day.
Table of Contents
Major players have taken Bitcoins from cryptocurrency exchanges such as Bitfinex, Coinbase, and Binance. The outflow of capital from platforms has been going on for several months.
Over the past few hours, at least 17 thousand BTC was withdrawn from the cryptocurrency exchanges, at the current exchange rate this amounts to almost $ 170 million. Cryptocurrency entered anonymous wallets and other platforms, transactions were recorded by the Whale Alert Twitter bot.
— Whale Alert (@whale_alert) May 19, 2020
First of all, investors took coins from the Bitfinex site. On May 19 5,000 BTC was withdrawn from it. Then 1593 BTC was removed from the Coinbase platform. Another 1,500 BTC was transferred from Xapo to OKEx. Following this, 5809 BTCs were sent from the latter, of which 2645 BTCs were listed on Binance. And then they sent 3058 BTC to an unknown address.
The outflow of BTC from trading platforms began a few months ago. Например, Since mid-April, as of May 14, the reserves of the Bitfinex exchange have decreased from 205 thousand to 134 thousand BTC. The reserves of the first cryptocurrency on the BitMEX and Huobi sites also decreased.
Reasons for the BTC Outflow from Exchanges
One reason for the outflow of capital from exchanges may be the reluctance of investors to sell bitcoin at current prices. This opinion was voiced by experts at the analytical company Glassnode. They noted that in April, site reserves decreased by 10% compared with the maximum established at the beginning of the year.
Another possible reason was named by the head of the analytical department of AMarkets Artem Deev. According to him, the outflow of funds from the sites may be associated with the current economic crisis. Large players get rid of cryptocurrency, as it is a risky investment, and transfer capital to defensive assets such as gold and US government bonds.
«At the beginning of the crisis, investors had confidence that cryptocurrency would compete with fiat currencies and in the future become a stable asset. There was a significant increase in the cost of BTC above $ 10 thousand. But when the global economy entered a state of recession, and oil prices began to fall, the bitcoin exchange rate also fell – at the moment below $ 3800. Then the currency stabilized around $ 6,400 and in May began to rise above $ 9,000.This happened against the backdrop of optimism and confidence that leading states would be able to quickly deal with the pandemic. However, a vaccine has not yet been developed, borders are closed, and economies are under pressure. Therefore, investors withdraw funds from risky assets by investing in gold and the US government bonds», — suggested Deev.
The reason for the outflow of capital from exchanges may also be a lack of trust in users. For example, on May 19, trading on the BitMEX platform suddenly stopped due to a malfunction. It was unavailable to traders for an hour. The day before yesterday, a lawsuit was filed against the company, and in November it leaked the data of its customers.
Disclaimer: Bitxmi News is a news portal and does not provide any financial advice. Bitxmi's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Bitxmi News won't be responsible for any loss of funds.