Centralized Crypto Exchanges Face Bitcoin Drain

decoding(63)

Published in

LeoFinance

Words

332

Reading

2 min

Listen

Play

Canva

According to a report the current data has revealed about 2,086,034 bitcoins were held as of July 11, 2023. This figure shows around 154,160 bitcoin less than the number of Bitcoin held on centralized crypto exchanges 72 days ago. The number of Bitcoin on exchanges have dropped significantly since July 31, 2020, where around 3 million bitcoins were held in exchange reserves.

Over the past two years and 11 months the number of bitcoin has decreased significantly held in exchange reserves, according to a data from Crypto Quant. Metrics on July 31, 2020 indicated 2,941,655 bitcoins were held on exchanges.

And as of today, the number of bitcoins held have decreased 2,086,034 meaning that over the period of 1,075 days, 855,621 bitcoin are removed from exchanges.

CryptoQuant

Roughly 154,160 bitcoins have been taken out of exchanges since April 30, 2023; at that time, reserves totaled 2,240,194 bitcoins. According to Bitcoin reserve balance data from Coinglass, the leading crypto exchange Binance has experienced a drain of 18,566.71 bitcoins over the period of 30 days. During the same period, Coinbase saw a withdrawal of 38,253.59 bitcoins, and about 9,403 bitcoins were withdrawn from OKX. Kraken, the San Francisco based crypto exchange had experienced 8,544 bitcoins withdrawn in the past month.

Looking at the principales of supply and demand, typically suggest that if supply decreases and demand stays steady or increases the price should rise. So, when there are fewer bitcoin available on exchanges for purchase, it may result in the price of Bitcoin rise.

The next Bitcoin halving expected to occur in less than an year from now, following which the totaly supply of new bitcoins releasing into the market will decrease significantly.

Are these moves of Bitcoin intensified withdrawal out of centralized exchanges due to the collpase of platforms like FTX etc?

What are your thoughts?