Hire a professional hacker here atTheHackersPro!
(Monday - Sunday)
Submit request

Bitcoin, ethereum on centralized exchanges at multi-year lows

  • Home
  • Blog
  • Hacking
  • Bitcoin, ethereum on centralized exchanges at multi-year lows
crypto news the trading chart is going down dark neon color galaxy on the background cyberpunk

crypto news the trading chart is going down dark neon color galaxy on the background cyberpunk

A recent report by on-chain data analysis platform, Santiment, shows that the two most valuable cryptocurrencies by market cap, bitcoin (BTC) and ethereum (ETH), are actively being pulled from cryptocurrency exchanges like Binance.

According to Santiment, crypto holders are moving their assets from custodial centralized exchanges to cold storage wallets where they have control of the coins’ private keys.

Private keys are important seed phrases for signing transactions, sufficient proof that the sender owns coins.

On-chain data shows that the supply of these two major cryptocurrencies on leading crypto trading platforms has been decreasing and shifting to self-custody.

Specifically, the amount of bitcoin on crypto exchanges stands at 5.84%, the lowest level since December 2017. Meanwhile, ethereum on exchanges is at 10.1%, a 8-year low and a level last recorded during the mining of the Ethereum genesis block in July 2015.

In hard numbers, only 1.1m of the 18.3m BTC in circulation are held in exchanges. Similarly, only 12.1m ETH are on centralized crypto trading platforms.

Run on exchanges may be precursor to bull market

Santiment also noted that while coin outflow from centralized ramps is not a perfect indicator, it does point to potential bull runs.

Even so, bulls need to hold on until the two digital assets play out over time.

Furthermore, it may illustrate a growing need for investors to have complete control over their crypto holdings and provide assurance that they are secure, given the distrust for exchanges caused by the collapse of FTX last year.

In March, withdrawals from Binance,the world’s leading cryptocurrency exchange, skyrocketed following a recent spat between the crypto exchange and the United States Commodity Futures Trading Commission (CFTC).

Since September 2022, crypto investors have been moving coins in droves to self-custody addresses. The process was accelerated in November 2022 following the disastrous collapse of FTX. The failure of the now-defunct exchange eroded user trust in centralized platforms.

Presently, some investors appear to be hurrying to transfer their holdings from Binance to cold wallets after the CFTC threatened to sue the exchange for allegedly breaking local trading laws.

According to media reports, Binance clients pulled out $400m in the 24 hours following the CFTC’s statement.

Parallel data further revealed that Binance users withdrew about $850m from the platform in the 12 hours preceding the CFTC issue.

Earlier, Binance had to deal with significant withdrawal requests in Q4 2022. This is after federal prosecutors in the United States said they could launch money laundering charges against the ramp.

Despite fears, the exchange didn’t fail on their withdrawal obligations and completed all transactions without incident.

CEO Changpeng Zhao, better known as CZ, dismissed assuaged user fears that all claims were a plot to create fear, uncertainty, and doubt (FUD) in the market.

Follow Us on Google News

Leave A Comment

Professional hackers for hire at TheHackersPro

(Sat - Thursday)
(10am - 05 pm)

Subscribe to our newsletter

Sign up to receive latest news, updates, promotions, and special offers delivered directly to your inbox.
No, thanks