Bitcoin Investors Are Heavily Withdrawing Funds, Imbas FTX Collapse

Bitcoin investors are busy withdrawing funds. (photo: Doc. Pixabay)

JAKARTA - Bitcoin investors are busy withdrawing funds from the stock exchange at a very large level not seen since April 2021. It is reported that nearly US$3 billion Bitcoin has been withdrawn over the past seven days.

New data from on-chain analytic firm Glassnode shows the number of wallets receiving BTC from exchange addresses reached nearly 90,000 on November 9.

Amid the ongoing turmoil over the bankruptcy of the main FTX exchange, concerns are growing among exchange users over the security of funds.

Many observers have stepped up suggestions to avoid custodial wallets and control crypto assets, and regulators are increasing scrutiny of the crypto industry en masse.

The on-chain figures show that a large number of fraudsters have opted for non-detention wallets over the past week.

The number of withdrawal addresses saw a huge spike on November 9, exceeding the daily highest number for May and June this year when the last BTC price action saw significant drop pressure. For November 12, the final date of data is available, the address withdrawn is still more than 70,000.

The same Glassnode data provides an average per hour of more than 3,000 withdrawal addresses for seven days until November 13.

These figures are linked to what appears to be a rapidly declining BTC reserve across major trading platforms.

While speed down suggests that balance counting may actually be difficult to confirm at present, data from other analytic resources CryptoQuant put the overall exchange reserves at their lowest point since February 2018.

CryptoQuant tracks a total of 38 exchanges, including those with reported financial problems such as FTX and Kucoin.

Another chart, this time from Coinclass, suggested 177,000 BTC in a weekly withdrawal through November 13, the US dollar value is around $3 billion at today's price.

Glassnode senior analyst Checkmate remains marking three exchanges in particular with so-called "very strange" readings of Bitcoin- Huobi, Gate.io and Crypto.com balances.

Ending a special thread into topic, he notes that The exchange balance is the best estimate based on the grouping of wallets. They are more likely to be a lower bound than to overestimate.'

"The flow of funds between these exchanges includes real customers + FTX / Alameda. It is difficult to separate, so it looks relatively balanced," he added.

Overcoming what the current scenario might be, Micha pathel van de Poppe, founder and CEO of trading firm Eight, meanwhile said the worst was not over.

"Maybe we'll have more problems with exchanges next weeks, but maybe a lot of gossip," he told Twitter followers on the weekend. "Stay safe, calm and don't make emotional decisions. We're in a terrible region, but crypto will be stronger."