According to the news in a tweet recently published by Arcane Research, Bitcoin (BTC) investors cryptocurrency frantically moving their savings elsewhere.
In connection with the issue, Glassnode added that the amount of Bitcoin on exchanges has reached the lowest level in the last four years.
“Bitcoin Withdrawals Like Never Before”
The Arcane Research team reported on the negative stock market net flows they’ve noticed since the beginning of the year.
The research company also explained its opinion on the reason for this situation. According to the company, this summer’s collapse of crypto lending companies such as Celsius, Babel Finance and Vauld after experiencing a liquidity crisis was the source of the latest development.
Hodlers have been moving their precious #bitcoins out of exchanges like never before following this summer’s collapse of major crypto lenders.
These events undoubtedly damaged the lenders’ trustworthiness, but are hodlers also losing trust in exchanges? pic.twitter.com/v4Tr0rNOaS
— Arcane Research (@ArcaneResearch) August 22, 2022
With the collapse of these companies, BTC withdrawals recorded their biggest peak since May.
The tweet says users are withdrawing Bitcoin from exchanges “like never before”. In addition, Arcane Research states that problems with crypto lending companies are causing serious harm to users, suggesting that they may lose their trust in crypto exchanges.
In June, 119,000 BTC was withdrawn from exchanges. In July, this figure was recorded as 96,000 BTC, and in August 65,000 BTC have been removed from the stock market so far.
Before the summer, the largest amount of BTC withdrawn from exchanges was 71,000 coins.
📉 #Bitcoin $BTC Balance on Exchanges just reached a 4-year low of 2,342,202,837 BTC
View metric:https://t.co/9vOOAmwh32 pic.twitter.com/C3CoUQ82cB
— glassnode alerts (@glassnodealerts) August 21, 2022
According to Glassnode, the amount of Bitcoin on centralized crypto exchanges has dropped to 2,342,202,837, the lowest level in the last four years.
*Withdrawing Bitcoin from exchanges triggers a rise in price as it reduces the amount of BTC available for sale on exchanges. Although it was seen that the price moved upwards when the supply amount in the stock markets decreased, it is not correct to make a price estimation based on this data alone.
*Not investment advice.
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