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Reports are Bitcoin (BTC) holding on Central Exchanges has seen to drop to its lowest since 2018
According to the prominent blockchain and cryptocurrency data provider platform Glassnode, the overall amount of bitcoins available on centralized exchanges has reached its lowest level as it was way back in 2018. It seems like users and investors are keen to pull their assets given the fearful environment across the crypto space created after several issues including halting withdrawal operations by Celsius and Babel Finance, etc.
It was in 2018 when the total volume of bitcoin (BTC) on centralized exchanges was about 2.4 million BTC and was increasing at the time. Since then this count of bitcoin (BTC) holding in exchanges had reached its all-time high in May 2020 of about 3.1 million bitcoin (BTC) and has never dropped until this June. But this instance of top cryptocurrency leaving the exchanges due to withdrawal by investors has been seen as a bullish indicator historically.
This could be understood by this as the balance of any assets available on some exchanges decreases, it takes down its liquidity as well as ability along with it. A lot of people have different opinions where they believe that when the outflow of bitcoin increases, it signifies that investors are moving their respective crypto assets into their cold storage hard wallets with the intention of long-term hold.
Given the growing concerns and doubts regarding the recent instance of crypto exchanges losing bitcoin, popular crypto YouTuber Guy has recently said that it is the most crucial time than ever before when it’s important to stress self-custody. He said that investors or users on such platforms couldn’t verify all these CeFi lenders’ current solvency and since crypto is trustless, they should keep holding their own coins. Apart from this, a long conversation has also been going on on Twitter.
The Celsius lending protocol has still not enabled its users and investors to access their own funds given its now been more than two weeks since the withdrawals on the platform were halted. This makes sense that holding bitcoin in a personal wallet could give the investors entire autonomy and ownership of the crypto assets while keeping in some crypto exchange is almost like putting their assets in a bank that has no protection from a government bailout.
ALSO READ: BlackRock Being Highly Bullish On Bitcoin
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
