Yingwei Finance Investments – After FTX, once the second largest cryptocurrency exchange in the world, filed for bankruptcy, investors started withdrawing their crypto assets into self-custodied cold wallets.
On-chain data provider Glassnode said on Nov. 13 that outflows from exchanges had reached an all-time high of 106,000 per month.
According to Glassnode, this has only happened three times in history: in April 2022, November 2022, and June-July 2022. Typically, Bitcoin outflows from exchanges are seen as a bullish signal (indicating that Bitcoin is held by long time), but in the current situation it seems to be a manifestation of a lack of faith in centralized exchanges.
Glassnode pointed out that the FTX crash resulted in a very visible change in the behavior of all Bitcoin holders.
Under the crisis of confidence in the monetary circle, the phrase “not your keys, not your coins” carries more weight than ever. MicroStrategy founder Michael Saylor said that self-custody of Bitcoin can prevent abuse of power by centralized third-party institutions.
Ethereum investment educator Anthony Sassano said cryptocurrency holders shouldn’t hold their assets on centralized exchanges unless they’re actively trading them.
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