The Crypto market consists of uncertain situations and high volatility. Many projects are released in the market over time but a few of them touch the peak of success. Bitcoin is the dominant Crypto in the market at present. And this coin has been holding the position for a long time now. The official bitcoin code is the best trading bot used by millions of investors you can invest in cryptos on this platform.
Despite that, some investors are exiting the exchanges and withdrawing their Bitcoin. The major reason behind this is the huge collapse of FTX. The FTX is one of the well-known names of a Crypto exchange. It was holding the position as one of the best Cryptocurrency exchanges out there. But, due to certain situations, this exchange faced a dramatic fall.
Why Are Investors Withdrawing Bitcoin?
With the collapse of FTX, investors are losing trust in the exchanges. They have the fear of losing their funds with the downfall of big exchanges like that FTX. They want to take care of their Tokens now and for this, investors are switching to self-custody.
Investors are moving the tokens to their cold wallets so that they can be assured of their safety. As per the data of Glassnode, the retail traders are aggressively exiting the exchanges and withdrawing their BTC.
And most of these withdrawals are arriving from Crypto.com. It is experiencing high FUD along with certain revelations. It was revealed that by mistake, this exchange transferred 320,000 ETH to its biggest competitor, Gate.io.
Kris Marszalek, who is the CEO, is addressing all these issues and shares that this exchange is operating in a normal manner. But, users are choosing to draw out their Tokens in huge masses from this firm. As per another data of Etherscan, the ETH withdrawal on 13th November was over 90,000.
High Rates Of BTC Withdrawals
Glassnode is releasing data on this aspect and it shows the advancing rate of draw outs of BTC. This data points out shows that the entire Bitcoin balance is falling at a high rate. Over the past few weeks of November, over 72,000 BTC has been withdrawn from the exchanges.
This downfall in the amount of Bitcoin is the largest in the entire history of the Crypto industry. Earlier, when such mass withdrawal took place was in 2020, when the market was in going in a Bearish trend.
Apart from Bitcoin, the next most influential coin ETH is facing similar issues. Over 1 Million ETH has been withdrawn in recent times. According to Glassnode, this is one of the largest 30-day downfalls after DeFi summer of 2020.
The entire Crypto Community Is Seeking Self-Custody
Different stakeholders are urging to make withdrawals from these exchanges to take precautions against losses. After FTXs major collapse and failure to meet their commitments, investors are opting for drawing out their funds.
The CEO of Binance, Changpeng Zhao, says that self-custody falls among the basic rights of the users. He further suggests all the users start including smaller amounts in this process. With this, they can learn the techniques and risks can be low as well. Also, a small mistake can turn out to be risky, so small amounts are good to start with!
Anthony Sassano, who is an educator of ETH has the same views on this aspect. He says that investors who have large investments and trades every day should keep their funds in CEXs.
Also, after a rise in the aspect of self-custody, the value of the token of Trust Wallet is rising by over 113% in a single week. With this, the token is at an all-time high of 2.48 USD as of 14th November. The popularity of the token rose after Changpeng tweeted about the same. In this tweet, he mentions how self-custody is important.
Conclusion
With the failure of many exchanges in terms of security and fulfilling commitments, investors are choosing self-custody. And, they are going for withdrawal of Cryptocurrencies like BTC or ETH.
Also, this is a mass withdrawal that is taking place in the Crypto industry at present. Investors are opting to save their BTC in cold wallets rather than in exchanges. This entire situation is sure to have some huge impacts on the Crypto industry.
