Amid rumors about a major crypto exchange, investors are pulling out significant Bitcoin amounts from Binance.
CEO Changpeng Zhao dismissed the rumors as an attempt to create fear and doubt. On August 23, Whale Alert on Twitter reported five withdrawals in a single minute, totaling 5,729 BTC (worth $150 million).
While conducted as separate transactions, all of the above occurred in a single Bitcoin block (block height 804522), registering simultaneously.
These withdrawals involved several recipients, with one particular address, “1KNm4…rA72p,” taking the spotlight. This unknown address holds the largest sum, currently possessing 5,434 BTC.
Bitcoin Exodus from Binance
Binance Reports 6 Days of Negative Bitcoin Netflow: Data from CryptoQuant indicates that Binance has seen continuous negative Bitcoin netflow for six days since August 17. During this period, a total of 14,460 BTC has been withdrawn from Binance’s reserves until August 22, following a price decrease.
Bitcoin: Exchange Netflow (Total) – Binance. Source: CryptoQuant
From August 17 to August 22, Binance experienced negative daily netflows of Bitcoin, which means more Bitcoin was withdrawn from the exchange than deposited. Here are the daily netflow results during this period:
- August 17: 1,754 BTC withdrawn
- August 18: 2,133 BTC withdrawn
- August 19: 2,007 BTC withdrawn
- August 20: 4,473 BTC withdrawn
- August 21: 948 BTC withdrawn
- August 22: 3,145 BTC withdrawn
Netflow is calculated by subtracting the total Bitcoin withdrawals from the total Bitcoin deposits on the exchange. The data for August 23 is still being compiled, but there were notable withdrawals of 5,729 BTC on that day as mentioned earlier.
Exchange balances reach 5-year low
Bitcoin balances on exchanges hit a 5-year low, and it’s not just Binance facing large withdrawals from investors.
📉 #Bitcoin $BTC Balance on Exchanges just reached a 5-year low of 2,269,235.253 BTC
Previous 5-year low of 2,269,719.368 BTC was observed on 22 August 2023
View metric:https://t.co/9vOOAmwh32 pic.twitter.com/jzkNkWUUYK
— glassnode alerts (@glassnodealerts) August 23, 2023
Currently, there’s less than 2.27 million BTC in centralized exchange addresses, suggesting that Bitcoin holders are transferring their coins to private wallets.
This movement may indicate a desire to hold onto the cryptocurrency for the long term or the safeguarding of recently acquired bitcoins.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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