Leading analytics company Glassnode reports that as Bitcoin holders decide to self-custody their money, crypto exchanges are seeing a large exodus of the cryptocurrency. A total of 179,250 BTC, worth more than $2.8 billion at the time of writing, had left centralized cryptocurrency exchanges in the previous month, according to Glassnode's Bitcoin exchange net position change statistic, which tracks the 30-day supply held in exchange wallets.
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Staggering $2,800,000,000 in Bitcoin (BTC) Has Left Crypto Exchanges Within One Month: Glassnode
The current rate at which BTC is departing cryptocurrency exchange platforms is the greatest in more than four years, according to the Glassnode data. Santiment Analytics is also closely monitoring the amount of Bitcoin available on cryptocurrency exchanges. Santiment claims that BTC supply has dropped below 7% on cryptocurrency exchanges for the first time since November 24th, 2018.
Only 6.95% of Bitcoin is now held on exchanges, according to data from Santimentfeed. Back on Black Thursday, there has already been a progressive change in BTC moving toward self-custody (Mar 2020). However, after the FTX scandal, this trend has picked up speed.
Santiment pointed out earlier this month that when market participants turn their attention away from digital asset exchanges, cryptocurrency has a history of bouncing.
"In general, cryptocurrency flourishes when exchanges are NOT the main focus. The biggest exchange failure in history will send shockwaves for a long time. But as evidenced, shifting attention away from exchange tokens and back to Bitcoin will probably be crucial for a reversal.
Sam Bankman-Fried's FTX filed for bankruptcy on November 11th amid claims that the cryptocurrency exchange handled customer funds improperly. Many investors withdrew their digital assets from centralized crypto platforms as a result of the news, which sent shockwaves through the sector.
The culmination of the bearish trend and FTX's bankruptcy has led to an increasing number of token holders jettisoning crypto exchanges as safe means to hold their BTC. The number might increase in the next coming days and this signals a lack of trust towards crypto exchanges. Interestingly, countries have begun to work on launching their national cryptocurrency exchanges.
Russia is leading the way with that and several other countries will jump on the trend following what might be the biggest revolutionary movement within the cryptocurrency ecosystem in the last couple of days. Let us know what your thoughts are about this in the comment section and suggest what you think crypto exchanges can do to secure the trust of investors.
