On October 20, 2020, the number of Bitcoin coins (BTC) on major exchanges fell below 2.5 million BTC for the first time in two years.
This trend is led by a researcher who has finally realized that only Bitcoin offers a healthy monetary policy, said Anthony Trencheff, co-founder of Nexo, to Cointelegraph:
“[People] are slowly realizing what some of us have known for a long time: BTC is the only sound monetary policy at the moment, and you can not avoid the best performance of the decade.”
He also noted that society is increasingly turning to self-sufficiency solutions, including platforms such as Nexo, where they can “effectively borrow against their assets, not sell them.” Cointelegraph reported yesterday that the Bitcoin offer is now more popular than ever.
Alex Mashinsky, co-founder of Celsius’ lending platform, cryptocurrency, told Cointelegraph that migration is likely to continue unless stock exchanges start offering better deals to their customers:
“As long as stock exchanges refuse to offer more to their customers, they go and hit Celsius. We have just hit $ 2.7 billion in deposits since they were launched two years ago. We will not grow as fast if we do not do more for our customers. Without exchange. ”
In the chart above, we can see that this volatility did not affect all stock exchanges in the same way. While BitMEX and Bitfinex balances were more than halved, Binance continued to raise additional funds. The storage facilities for coin bases also remained virtually unchanged.
The increase in DeFi may also have contributed to this trend. The number of Bitcoins blocked on Ethereum via wBTC and renBTC currently exceeds 130,000. Just a few months ago, these numbers were insignificant. Another potential culprit is institutional adoption. In addition to the Bitcoin Trust’s continued growth on a gray scale, public companies such as MicroStrategy and Square have begun adding cryptocurrencies to their vaults.
There seems to be a general trend for users to withdraw bitcoins from secure exchanges, or that some major exchanges may lose customer trust. The latter can be a reasonable result, as only three platforms (BitMEX, Huobi and Bitfinex) were responsible for most of the trend – their balance shrank by 390,000 BTC, making them responsible for almost 80% of the total decline.