Analysis

CEXes: 200,000 BTC And More Than 1,000,000 ETH Left

CEXes growing confidence issue between exchanges and their users, investors are swiftly liquidating the majority of their holdings on trading platforms and moving their money to cold storage or hot wallets.
CEXes: 200,000 BTC And More Than 1,000,000 ETH Left 4

This process is known as the big migration of cryptocurrencies off of exchanges.

After the collapse of FTX, cryptocurrency exchanges have been in a real crisis as investors scramble to find solutions to protect their holdings. Unprecedented volumes of Bitcoin, Ethereum, and other top-tier cryptocurrencies are exiting centralized trading platforms. Up until the end of the year, the trend might.

CEXes: 200,000 BTC And More Than 1,000,000 ETH Left 5

On-chain data shows that more than 1 million ETH and almost 200,000 BTC worth $3.4 billion departed various centralized cryptocurrency trading platforms, marking the largest outflow of assets from CEXes since 2021. Such a tendency can mean a lot of different things.

First off, a declining trend in open interest and a general selling pressure on the market are frequently correlated with a declining volume of assets on exchanges. Compared to investors who save their money on exchange wallets, traders have a tendency to cling onto their money for longer once they remove it from the open market.

How will this impact the market?

CEXes: 200,000 BTC And More Than 1,000,000 ETH Left 6

If the trend continues, the volatility will decrease along with the selling pressure we saw in November. The withdrawal of capital from exchanges typically marks the beginning of an accumulation phase, which happens just before the market as a whole recovers.

Even without the rebound on trading exchanges, the bitcoin market recovery is still feasible despite the macroeconomic sector’s downturn. But it can be challenging to make projections and establish deadlines, particularly as the year comes to a close.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Annie

Coincu News

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Pepeto’s $600K Presale Highlights Vision for Supporting Memecoins Ahead of 2025

London, united kingdom, 22nd November 2024, Chainwire

40 minutes ago

Robinhood Exec Dan Gallagher Declines SEC Leadership Role

Robinhood Exec Dan Gallagher declined consideration to lead the SEC, affirming his commitment to Robinhood…

1 hour ago

Best Cryptos to Buy in November 2024: What Sets Qubetics Apart from Fantom and Immutable X?

Discover why Qubetics, Fantom, and Immutable X are the best cryptos to buy in November…

2 hours ago

Franklin Templeton Digital Assets and Sui Now Join Hands to Strengthen DeFi Strategy

Sui Foundation partners with Franklin Templeton Digital Assets to enhance DeFi solutions on the blockchain.

2 hours ago

Get Insights on BlockDAG’s $136M Presale Success Revealed in Recent AMA—BTC Soars to $99K, Avalanche Trading Volume Surges

See how Bitcoin confronts $99K resistance, Avalanche enjoys a 23% rise, & BDAG achieves a…

2 hours ago

This website uses cookies.