Bitcoin ($ BTC) has moved out of exchanges with ‘most aggressive exchange rates in history’
Cryptocurrency investors have pulled Bitcoin ($ BTC) from cryptocurrency exchanges to the “most aggressive exchange rate in history” as the total outflow of exchanges in June peaked at 151,000 BTC, worth over $ 3 billion.
According to data from the chain analysis company Glassnode, the largest stock market outflows registered last month were registered, with so-called shrimp and whale wallets as the main recipients of these outflows on the cryptocurrency blockchain.
These outflows come as Bitcoin has delivered its worst quarterly result in more than a decade, as in the second quarter of this year it lost around 58% of value, going from $ 45,524 to just under $ 19,000 at the end of the three-month period.
Bitcoin has delivered its worst quarterly result since 2011, when it lost 68.1% of its value in the third quarter of the same year. At that time, the price of the cryptocurrency plummeted after its largest stock exchange, Mt. Gox, in June 2011 experienced its first hack. At that point, even the BTC flash crashed down to $ 0.01.
Falling cryptocurrency prices revealed that several companies in the area were strongly exploited. In May, TerraUSD ($ UST), an algorithmically stable currency in the Terra network, collapsed, along with sister token LUNA, and wiped billions from the market.
In June, the controversial crypto-lending company Celsius Network froze withdrawals for customers over “extreme market conditions”, with rival lender Babel Finance and the crypto exchange CoinFLEX frozen withdrawals shortly after. These were followed by Vauld and Voyager Digital.
In addition, the crypto hedge fund Three Arrows Capital has gone into liquidation following a court ruling issued in the British Virgin Islands after creditors sued the fund for its inability to repay debt.
Stock exchanges that freeze withdrawals probably reminded most cryptocurrency investors that their assets are more secure in the wallets they control, which led to the outflow of cryptocurrency exchanges. Especially since March 2020, the number of BTCs held on stock exchanges has fallen from 3.15 million to 2.4 million.
As CryptoGlobe reported, the number of active cryptocurrency users in Bank of America has fallen by more than 50% from the top below the height of the cryptocurrency bull market as cryptocurrency prices plummet and Bitcoin sets its worst quarter in more than a decade.
To find the number of cryptocurrency investors using their platform, Bank of America looked at anonymous internal customer data that showed the number of customers who made investments in cryptocurrencies by sending or receiving payments to or from a cryptocurrency platform.
In particular, Glassnode’s data have found that the recent reduction in the number of non-zero balance addresses on the Bitcoin blockchain led 1% of users to clear their holdings, compared to 2.8% between April and May 2021, and to 24% between January and March 2018.
Photo credit
Selected image via Unsplash
