Binancians Took out $1.35B in Bitcoin in just 6 days

Binancians-Took-out-$1
  • Binance has seen a net of 81,712 bitcoin ($1.35 billion) removed from the exchange.
  • On Twitter, Changpeng Zhao, the CEO of Binance, pleaded for calm.
  • The fall of FTX served as the incentive for quick departures.

The collapse of competitor exchange FTX coincided with record numbers of withdrawals of Bitcoin, Ethereum, and stablecoins from Binance, the largest cryptocurrency exchange in the world.

Over the last six days, Binance has seen a net 81,712 bitcoin ($1.35 billion) removed from the exchange. According to figures from CryptoQuant, this represents more than 15% of the approximately 500,000 bitcoin available on its platform. In addition, within the same time period, Binance had a net withdrawal of 125,026 ether worth $155 million and $1.14 billion in stablecoins.

On Monday morning, Binance CEO Changpeng Zhao made a calm-down plea on Twitter. He claimed that when cryptocurrency values fall, a “slight” increase in the rate of withdrawals is typical.

The withdrawals are a problem for the whole sector. According to Coinglass, during the last seven days, about 200,000 bitcoin have been removed from exchanges. Increasing the total amount of bitcoin still held on exchanges to 1.88 million. Similar percentage drops to Binance are being seen by cryptocurrency brokers like Coinbase (COIN), Gemini, and Kraken.

The fall of FTX, which was one of the biggest exchanges before it filed for bankruptcy last week, served as the incentive for the quick departures. 

Following a report that revealed weaknesses in the balance sheet of FTX’s sibling firm, Alameda Research, speculation concerning the company’s financials increased. Customers rushed to immediately withdraw money from FTX, which caused a shortage of liquidity.

Tags:
disclaimer read more

Crypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.

Godfrey Mwirigi is an enthusiastic crypto writer with an interest in Bitcoin, blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience in their day-to-day endeavors.

programmer & freelance writer