Bitcoin outflows hit the lowest level in the last seven months.
This data may indicate that investors are starting to trust centralized exchanges (CEX) again.
Bitcoin Outflows Are Decreasing
Decreasing exits from crypto exchanges could be a sign that confidence in CEXs is starting to be restored after the collapse of FTX. After the collapse of FTX, billions of dollars worth of digital assets were exited from these exchanges.
The bloodshed of the entire cryptocurrency market led to the destruction of large investments and the collapse of FTX, damaging the reputation of centralized exchanges. Many investors have withdrawn billions of dollars worth of digital assets from these platforms with similar concerns.
Last month, nearly $8 billion worth of cryptocurrencies were withdrawn from CEXs within a week. While the amount of withdrawn Bitcoin was at the level of $ 3.7 billion, ETH transactions saw $ 2.5 billion.
The US Department of Justice’s scrutiny of Binance on the grounds that it facilitates money laundering has caused investors to worry again. Although the company’s CEO, Changpeng Zhao, said it was a FUD, there was another big wave of withdrawals.
The world’s largest cryptocurrency exchange saw an outflow of approximately $8 billion on December 13. Zhao assured investors that they are coping with customers’ demand and are financially stable.
Panic is easing among investors, according to data from Glassnode. BTC exit volumes have dropped to 986.37 BTC at the seven-day moving average. This number was last observed at such low levels last May.