Traders start withdrawing less BTC from exchanges

After the American cryptocurrency exchange FTX collapsed and the issue of centralization of digital assets began to actively disturb investors, crypto enthusiasts began to withdraw their assets from exchanges.

Investors and traders have begun to use hardware wallets as a new means of storing their money savings. The latter began to be in such great demand that it was not always possible to order them. And the Ledger manufacturer, for example, said that after the FTX situation, the company showed the week of the best sales in the history of the existence of the Ledger.

As a result of the fact that the centralization of funds was called into question, almost all cryptocurrency exchanges began to experience problems with a large outflow of funds. The head of Binance even tried to regain the trust of customers and hired Mazars to audit reserve funds and give more transparency to what is happening. However, experts questioned their competence and the work done, and even a consoling result of 101% of reserve bitcoins did not help stop the problem.

By the end of December, the situation began to stabilize and the outflow of funds began to noticeably decrease. The departure of bitcoins from centralized cryptocurrency exchanges began to decrease gradually. At the moment, according to experts from the analytical service Glassnode, the rate of withdrawal of funds from the sites has reached a seven-month low.

Despite the fact that Bitcoin is being actively withdrawn from cryptocurrency exchanges, investors have not yet sought to exchange them for fiat. This gives the flagship cryptocurrency a low level of volatility and keeps bitcoin holders from losing big.

According to Glassnode, only 9,352 bitcoins left the exchanges 2 days ago. Thus, the outflow decreased by 93.5%. A similar situation was observed in May 2022.

According to analysts, more than $3,000,000,000 was withdrawn from exchanges in a week after FTX began to experience difficulties and then admitted financial insolvency.