Bitcoin withdrawals from exchanges massively outweighed deposits on Friday thanks to activity from a handful of whales.
Glassnode data shows BTC withdrawals hit nearly $240 million in a single day. The outflow was the sixth largest this year. And transactions worth over $10 million accounted for about half of all withdrawals.
Net BTC transfer volume to/from exchanges (Source: Twitter)
The same data shows that overall exchange activity, both deposits and withdrawals, has increased. For example, in a single day in April, over $360 million worth of bitcoin was deposited on exchanges. Even then, the surge in activity was fueled by transactions in the $10+ million range.
The Ethereum Foundation drives the ETH movement
And it’s not just bitcoin that’s seeing a bigger move inside and outside of crypto exchanges.
On Saturday, the Ethereum Foundation transferred 15,000 ETH to a Kraken custody address. Apparently a sell-off worth around $30 million based on previous trends, observers have speculated that ETH’s price could fall.
In the past, the Foundation has timed its sell-offs to market highs and used peaks in the ETH price cycle to maximize profits. And while ETH price is showing no signs of a major downtrend right now, a negative adjustment may be due if history repeats itself.
Exchanges still haven’t recovered from post-FTX bulk withdrawals
Overall, Glassnode data shows that the total supply of Bitcoin held across major exchanges has increased since mid-March and currently stands at just over 2.3 million BTC. There is also around 18.1 million ETH deposited with crypto exchanges.
However, total assets on centralized exchanges have still not recovered from the mass withdrawals between October and January.
Previously, it was common for over 2.5 million BTC to be held by exchanges at any point in time. And at the peak of March 2020, over 3.2 million BTC were deposited with exchanges.
BTC balances on exchanges (Source: Glassnode)
During this time, fears that contagion from FTX’s collapse could bring down another cryptocurrency exchange prompted many investors to seek alternative custody solutions for their assets.
Disclaimer
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