FTX collapse has panicked crypto investors withdrawing bitcoin from centralized exchanges

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According to blockchain analysts at Glassnode, bitcoin holders are stingy after the dramatic collapse of the FTX cryptocurrency exchange. Bitcoin (BTC) withdrawals have hit a record monthly rate of 106,000, indicating that customers may be losing trust in third-party services.

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Glassnode tweeted that there were three other periods with similar withdrawal patterns in recent years, April and November 2020 and June to July 2022, when combined factors – including the Russian invasion of Ukraine and the failure of the Terra Luna stablecoin – caused the crypto market made. To dive in the nose.

After the fall of FTX, #bitcoin Investor 106k . withdrawing self-custodial coins at a historical rate of $BTC/month.

It is compared to only three other times:
– April 2020
– November 2020
– June-July 2022 https://t.co/92aYVYU4Yt pic.twitter.com/em7CsDBWUf

— glassnode (@glassnode) 13 November 2022

In the past, similar outflows have sometimes indicated an uptrend. In this case, it is more likely to be a sign that investors have lost faith in big-name exchanges. As noted by Markets Insider, these actions show that “crypto investors are rethinking how to manage their digital assets now as the world’s once third largest crypto exchange has faltered and The fortune built by FTX founder Sam Bankman-Fried has value. [has] Now up to $1 has been wiped out.”

CoinEdition quoted Hong Kong-based Digital Asset Operations Manager Alan Wong, who said that after FTX, “things will continue to boil” and that with an $8 billion gap “between liabilities and assets, when FTX goes bankrupt.” , it would trigger a domino effect, which would lead to a series of FTX-related investors going bankrupt or forced to sell assets.”

Reuters reported on Monday that FTX is under investigation by an alphabet soup of agencies including the US Department of Justice and the Securities and Exchange Commission. As of 11:30 on Monday night, bitcoin was trading at $16,770 after falling below the $16,000 mark earlier in the day.

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