FTX Collapse Has Nervous Crypto Investors Draining Bitcoin From Centralized Exchanges

0

[ad_1]

Opinions expressed by Entrepreneur the contributors are theirs.

the holders are capricious following the dramatic collapse of the FTX exchange, according to analysts at Glassnode. Bitcoin (BTC) withdrawals hit an all-time high of 106,000 per month, indicating customers may be losing faith in third-party services.


NurPhoto / Contributor | Getty Images

Glassnode tweeted that there have been three other periods in recent years with similar withdrawal patterns, April and November 2020 and June to July 2022, when combined factors – including the Russian invasion of Ukraine and the failure of the stablecoin Terra LUNA – caused the crypto market to plummet.

In the past, similar outings have sometimes signaled a bull run. In this case, it is much more likely to be a sign that investors have lost faith in big name exchanges. As Markets Insider noted, these actions “suggest that crypto investors are reconsidering how to manage their now that the world’s third-largest crypto exchange has faltered and the value of the fortune accumulated by FTX founder Sam Bankman-Fried [has] now cleared to $1.”

CoinEdition cited Hong Kong Director of Digital Asset Operations, Alan Wong, who said that after FTX, “things will continue to simmer” and with an $8 billion gap “between liabilities and assets, when FTX will be insolvent, this will trigger a domino effect, leading to a series of investors tied to FTX going bankrupt or being forced to sell assets.”

Reuters reported On Monday, FTX is being investigated by an alphabetical soup of agencies, including the US Department of Justice and the Securities and Exchange Commission. From 11:30 p.m. Monday evening, Bitcoin was trading at $16,770 after falling below $16,000 earlier in the day.


[ad_2]
Source link

Share.

Comments are closed.