Recent data shows that the 7-day moving average of bitcoin getting out from centralized exchange platforms is on decrease. It appeared that about 986.237 BTC were withdrawn from the exchanges during the last week.
Once a leading crypto exchange within the crypto industry, FTX filed for bankruptcy under Chapter 11 Bankruptcy Code in November 2022. The exchange was said to misuse the users funds and allocate it for trading and investment purposes, etc. This resulted in users losing faith in centralized exchanges and cryptocurrencies like bitcoin (BTC).
Broader cryptocurrency market is struggling to maintain a threshold for about a year now. The decline started at the start of this year after the global crypto market attained its all time high market capitalization of more than 3 trillion USD. It now stands below 1 trillion at around 812 billion USD. Major cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) have suffered throughout. And there remained varied reasons for the instance to take place including the recent fall of crypto exchange FTX.
Now when the outflow is declining, this indicates that centralized exchanges are now gaining the investors trust after FTX collapse. No need to mention that amidst the chaos after Bahamian crypto exchange filed for bankruptcy, investors flocked to the exchanges seeking withdrawals and took out billions of dollars.
The 7d moving average for outflow volumes from bitcoin exchanges has shrunk to 986.237 BTC, according to current data from Glassnode, suggesting that investor angst is lessening. The most recent time the numbers were this low was in May of this year.
Glaasnode’s research also showed that investors have substantially less requests for withdrawals for other crypto assets. Compared to the roughly 45,000 ETH that left platforms in the middle of November, Ethereum exchange outflow volumes reached a one-month low of 8,096.373 ETH.
Withdrawals of stablecoin have also decreased, with the total amount of USDC exchange withdrawals falling to a 22-month low of 166.238.
However, it’s important to keep in mind that these withdrawal drops occurred over the Christmas holidays, a time when investors are normally less active as evidenced by the low trading volumes and low volatility.
Source: https://www.thecoinrepublic.com/2022/12/27/bitcoin-exchange-outflow-on-decrease-signals-users-trusting-cexs-on-recovery/