Bitcoin reserves on exchanges have been steadily declining since the FTX scandal and Binance FUD.
- As of writing, the total bitcoin left on exchanges is 2,118,769. It is 2.64% lower from a week ago and 13.52% lower before FTX’s demise (39 days ago). The rapid outflow of bitcoin from centralized exchanges (CEX) makes its reserves extremely low.
- Bitcoin holders are now pulling their assets out of CEX due to the recent fallout and bankruptcy of FTX. Followed by FUD, Binance has experienced massive withdrawals from the platform. According to Changpeng Zhao (Binance CEO), the FUD caused a “stress test” to its system withdrawal functionality “which in turn helps to build the credibility for exchanges that pass the test.”
- Holders decided to store their assets personally on hard drives such as Ledgers and Trezors. In a recent AMA (Ask Me Anything) hosted by CZ, he worries that holders who choose “self-custody” will lose their assets. Their research shows people lost more assets in self-custody than in centralized exchange issues, usually due to the misplacement of private keys.
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