bitcoin (BTC) has flooded exchanges over the past week as users wary of security and regulatory scrutiny.
Chain monitoring resource data coin glass shows that exchanges in the United States in particular are seeing heavy reductions in the BTC balance.
US exchanges drive BTC exodus
In the wake of the FTX ScandalEfforts to draw attention to the risk of custodial BTC storage have intensified on social media.
The fallout from FTX is just beginning, and as regulators plan investigative actions and greater scrutiny of crypto as a whole, investor angst continues to grow.
The data shows that the trend is still in effect when it comes to exchange withdrawals. Over the past seven days, virtually all major platforms have seen net withdrawals exceed deposits.
The biggest weekly reduction comes from Gemini, down nearly 30,000 BTC, followed closely by Kraken, Binance, and Coinbase.
Unsurprisingly, US exchanges have seen particularly large pullbacks, with the jurisdiction set to play a key role in the FTX saga going forward.
“The downfall of FTX caused massive harm to over a million users, many of whom were everyday people who invested their hard-earned life savings in the FTX cryptocurrency exchange, only to see it all disappear in a matter of seconds. seconds,” Maxine Waters, Chairman of the U.S. House Financial Services Committee, which will host the hearing, said: cited by mainstream media.
Coinglass figures meanwhile show that even exchanges without exposure to FTX have failed to stem the exodus.
In total for the week, 134,000 BTC left their books, equivalent to around $2.2 billion at current prices, including around $1.5 billion from US platforms.
“Acute financial distress”
Like Cointelegraph reportedwhile exchange withdrawals have increased, the average BTC hodler remains significantly underwater – and therefore less inclined to sell.
Data from an on-chain analytics company glass knot confirms it. The long-term average holder (LTH) — an entity holding coins for at least 155 days — is 33% in the red.
This is almost unprecedented and is matched only by the bear market low of 2018, when the average count hit 36%.
Accompanying comments described LTH as undergoing “acute financial distress”.
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