Crypto investors are withdrawing BTC from exchanges at a record pace

According to a report by analytics company Glassnode, BTC investors have been withdrawing tokens from centralized exchanges at a record rate since the collapse of FTX; with bitcoin outflows reaching 106,000 units per month, writes Business Insider.

The outflow of bitcoins is caused by the recent dramatic changes in the entire cryptosystem: the failure of crypto exchange FTX led to a change in the behavior of bitcoin holders.

Thus, according to the analytics company Glassnode, bitcoin investors began withdrawing the currency from centralized exchanges at a historically record rate after the collapse of FTX.

This withdrawal rate is similar to the withdrawal patterns recorded in April 2020, November 2020, and June and July this year.

Crypto investors are now reconsidering how to manage their digital assets as the once third largest cryptocurrency exchange in the world has staggered and the value of FTX founder Sam Bankman Fried’s fortune has shrunk to $1.

Binance CEO Changpeng Zhao told his Twitter (NYSE:TWTR) followers that his cryptocurrency exchange Binance will liquidate all remaining FTX assets.

Alameda Research, the trading arm of FTX, relied heavily on the illiquid cryptocurrencies it had on its balance sheet. Binance later backed out of the FTX bailout, and FTX filed for bankruptcy protection on Friday after failing to make up an $8 billion shortfall due to a liquidity crunch.

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