Markets

BTC whale exchange but deposits continue to grow

Bitcoin withdrawals from exchanges significantly outnumbered deposits on Friday thanks to the activity of a handful of whales.

Data from Glassnode reveals that BTC withdrawals reached nearly $240 million in a single day. The outflow was the sixth largest seen this year. Transactions over $10 million USD accounted for about half of the withdrawals.

Net BTC transfer volume to/from exchanges (Source: Twitter)

The same data shows that total exchange activity, both deposits and withdrawals, is on the rise. For example, on a single day in April, more than 360 million USD worth of bitcoins were deposited on the exchanges. And then also, the increase in activity was driven by transactions in the $10 million+ range.

The Ethereum Foundation drives ETH traffic

And it’s not just Bitcoin that’s seeing more movement in and out of cryptocurrency exchanges.

On Saturday, the Ethereum Foundation transferred 15,000 ETH to a Kraken deposit address. Seemingly hinting at a sell-off of around $30 million, based on previous trends, observers speculated that the price of ETH might be on the verge of a decline.

In the past, the institution has located its sell-offs as the market peaks, taking advantage of high points in the Ethereum price cycle to maximize gains. And while the price of ETH is showing no signs of a major downtrend at the moment, if history repeats itself, it could be due to a negative adjustment.

Exchanges are still not refunded from block withdrawals after FTX

In general, Glassnode data It shows that the total balance of Bitcoin held on major exchanges has increased since mid-March and currently stands at just over 2.3 million BTC. There are also about 18.1 million ETH deposited on crypto exchanges.

However, the total assets held on centralized exchanges have not yet recovered from the mass withdrawals between October and January.

Previously, it was common for there to be more than 2.5 million bitcoins on exchanges at any given time. At the peak of March 2020, more than 3.2 million bitcoins were deposited on exchanges.

BTC balances on exchanges
BTC balance on exchanges (source: glass)

During this period, fears that contagion from the FTX crash could lead to the downfall of another cryptocurrency exchange led many investors to look for alternative custody solutions for their assets.

Disclaimer

Adhering to the Trust Project’s guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently check the facts and consult with a professional before making any decisions based on this content.

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