Despite the huge drop in crypto asset’s price, bitcoin (BTC) has seen massive withdrawal from crypto exchanges.
Bitcoin has seen a massive drop in its price that ended up flagship cryptocurrencies to hit recent lows. Even at the time of writing, BTC is trading at around $20,443. This is lower than almost 70% from its all time high of $69,000. Looking at prices, the effect on other aspects related to the assets become obvious.
For instance, there are several reports that noted that the bitcoin holdings on many centralized crypto exchanges has dropped significantly. Stats shows that a major portion of this loss of BTC on platforms last month was a repercussion of the drop in value of bitcoin, which is down by approx 30% during the last 30-day timeframe.
Since the prices are not impressive enough, this led to massive sell off across the crypto space. Following this, many crypto exchanges faced significant liquidations and many of them had halted operations like withdrawals of cryptocurrencies. Undoubtedly, these incidents are enough to place fear among people about the crypto economy and this lead to huge moves off of bitcoin from exchanges despite the lower prices.
Reports said that bitcoin had seen and going through historically one of the worst phases in terms of monthly price performance. The data seems to show that bitcoin has seen almost an expulsion of crypto users entirely from the space. This leaves crypto holders as the last defense line for the top cryptocurrency.
Moreover, it was detailed in the reports about bitcoin being removed from centralized trading platforms during last month. Additionally reports mentioned that regardless of weak price action during last month, the withdrawal of bitcoin from exchanges remains highly aggressive.
During May, 2022, it was also reported that the total number of bitcoin available on exchanges had been going through massive drops that led to consistent drops. It has seen its lowest since 2020.
Source: https://www.thecoinrepublic.com/2022/07/11/most-aggressive-bitcoin-withdrawal-rate-in-history-reports/