A recent report from on-chain data analytics platform, Santiment, shows that the two most popular cryptocurrencies by market cap, Bitcoin (BTC) and Ethereum (ETH), are actively being pulled from cryptocurrency exchanges such as Binance.
according to saintCryptocurrency holders move their assets from custodial centralized exchanges to cold storage wallets where they control the private keys to the coins.
Private keys are important initial phrases for signing transactions, and they are sufficient proof that the sender owns coins.
On-chain data shows that the supply of these two major cryptocurrencies on leading cryptocurrency exchanges has decreased and shifted to self-guarding.
Specifically, the amount of bitcoin on cryptocurrency exchanges is 5.84%, the lowest level since December 2017. Meanwhile, ethereum on exchanges is 10.1%, the lowest in 8 years and another level recorded while mining the Ethereum genesis block in July. 2015.
By hard numbers, only 1.1 million of the 18.3 million BTC traded are held on exchanges. Similarly, there are only 12.1 million Ethereum on centralized cryptocurrency exchanges.
A run on the stock exchanges may be a precursor to a bull market
Santiment also notes that while the coin influx from central slopes is not a perfect indicator, it does point to potential upsides.
However, the bulls need to hold on for the digital assets to run over time.
Moreover, this may illustrate the growing need for investors to take full control of their cryptocurrency holdings and provide assurances that they are safe, given the distrust in exchanges it causes. Collapses FTX last year.
In March, withdrawals from Binance, the world’s leading cryptocurrency trading platform, skyrocketed after the recent dispute between the cryptocurrency exchange and the United States Commodity Futures Trading Commission (CFTC).
Since September 2022, cryptocurrency investors have been moving currencies in large numbers to self-custodial addresses. The process was accelerated in November 2022 after the catastrophic collapse of FTX. The failure of the now-defunct exchange eroded user trust in centralized platforms.
For now, it appears that some investors are rushing to transfer their Binance holdings into cold wallets after the CFTC threatened to sue the exchange for allegedly violating local trading laws.
(embed) https://www.youtube.com/watch?v=LFUxIekGZco (/embed)
According to media reports, Binance clients have pulled out 400 million dollars In the 24 hours following the CFTC’s statement.
The parallel data further revealed that Binance users withdrew about $850 million from the platform in the 12 hours leading up to the CFTC release.
Earlier, Binance had to deal with large withdrawal requests in the fourth quarter of 2022. This is after federal prosecutors in the United States said they may file money laundering charges against Ramp.
Despite the concerns, the exchange did not fail to meet its withdrawal obligations and completed all transactions without incident.
CEO Changpeng Zhao, better known as CZ, dismissed users’ concerns that all allegations were a conspiracy to create fear, uncertainty and doubt (FUD) in the market.