Investors Moved Over 310,000 Bitcoins from Exchanges since Mid-March Crash
The market crash that happened in mid-March and popularly called “Black Thursday” was serious such that it has prompted a far-reaching shift in dynamics among Bitcoin investors. The day was unforgettable for cryptocurrency investors as the market incurred a serious selloff triggered by liquidations on BitMEX platform. A remarkable change initiated by the event is the dip in Bitcoin balance on exchanges.
According to data, the amount of Bitcoin removed from exchanges after the crash was more than 310,000. Perhaps they were moved into cold storage solutions, showing that investors plan to hold their coins for a longer period. In addition, the occurrences that led to the crash seem to have greatly degraded investors’ trust in centralized platforms.
On March 12 (Black Thursday), the price of Bitcoin, which was $8k in the early hours, incurred a steep decline to the lower-$5k zone. The decline became more serious with further liquidation of these positions, making it almost impossible for the bulls to defend Bitcoin from the bearish pressure. Bitcoin eventually attained lows of $3.8k as trading stopped on BitMEX platform because of a supposed hardware issue.
Since the event, the rate at which investors have been moving their Bitcoins away from exchanges has been remarkable. Glassnode mentioned the issue recently on Twitter, noting that it is the biggest Bitcoin outflow ever:
“Bitcoin has seen its largest prolonged withdrawal of funds from exchanges. According to our data, over 310,000 BTC have moved out of exchanges since Black Thursday. Largest outflows: Bitfinex: -126,845 BTC Huobi: -95,496 BTC BitMEX: -95,438 BTC.”
One of the major factors likely to be influencing investors’ decision to move their Bitcoin from exchanges is BitMEX’s major role in the market crash which has revived distrust of centralized entities such as exchanges.
This may also suggest investors’ long-term investment strategy as Bitcoin starts doing well even in the midst of worldwide financial turbulence. Since transaction times are lengthy and fees are increasing, traders may not be too inclined to transfer this Bitcoin back into exchanges, thereby possibly offering some stability for Bitcoin.