The largest crypto exchange in the world, Binance has experienced the most significant Bitcoin withdrawal in its history, per recent data. The company might face a bank run as crypto investors’ confidence continues to decline following the collapse of trading venue FTX and a U.S. investigation into major crypto exchanges. 

At the same time, positive economic data from the U.S. is positively impacting the market. Bitcoin is back above its previous yearly lows. As of this writing, BTC’s price trades at $17,750 with a 4% and 5% profit in the last 24 hours and the previous week, respectively. 

BTC’s price trends to the downside on the daily chart. Source: BTCUSDT Tradingview

Bitcoin Rally In Danger, Binance Makes A Stand

Data from on-chain analytic firm Glassnode, shared by Dylan LeClair, indicates that Binance has seen a massive withdrawal of 40,000 BTC in the last 24 hours. The outflows are almost double those seen in July 2021. 

At that time, the crypto market was experiencing a second capitulation event after hitting an all-time high north of $60,000. The cryptocurrency lost over 50% of its value from May to late July. 

In early November, the crypto exchange saw a significant outflow as FTX went belly up. However, the market seems more bearish on crypto exchanges now that at two of its worst sentiments, during the 2021 capitulation and the FTX collapse. 

Bitcoin BTC BTCUSDT Chart 2
BTC outflows on Binance increasing. Source: Glassnode via Dylan LeClair

In addition, the crypto exchange has experienced its worst stablecoin outflow since its inception. Additional data from LeClair…

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.