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What prompted users to withdraw 310,000 bitcoins from exchanges?

Cryptocurrency

Users have transferred more than 310,000 exchange bitcoins since mid-March

More bitcoin leaving exchanges after selloff
Bitcoin for financial freedom?

More than 310,000 bitcoins have been removed from cryptocurrency exchanges since March 12, 2020, a date that has earned the nickname "Black Thursday".

Blockchain data shows that withdrawals from exchanges reach the highest consecutive run of all users by removing their assets from an exchange. The Glassnode analysis platform notes that the biggest exits are concentrated in three major exchanges: Bitfinex, Huobi and BitMEX.

According to data from the platform, Bitfinex saw 126,845 bitcoins leave the stock exchange, with Huobi and BitMEX seeing 95,496 and 95,438 bitcoins respectively from their platforms. Other exchanges that saw users move large stakes include Bitstamp, Kraken and Bittrex.

In total, the 310,000 bitcoins that have left exchanges since that turbulent day in March are worth more than $ 2.7 billion at current prices.

On January 3, 2019, Trace Mayer inaugurated the “Key Proof” day, which encouraged users to withdraw their Bitcoin from exchanges, with the mantra “not your keys, not your Bitcoin”.

The event did not gain the traction Mayer had expected, but it still highlighted the view that crypto holdings are not the safest places to store crypto holdings.

While users routinely move their trading assets, the backdrop for the transfer of more than 310,000 bitcoins from centralized cryptocurrency exchanges, probably for cold storage, correlates with the massive settlements seen at Bitmex in March.

In a day of massive settlements on derivative platforms like Bitmex, the value of the main cryptocurrencies fell 50% overnight. Although Bitcoin has recovered from the scam, users seem to have decided to change their cryptocurrencies. It may also be that investors intend to dodge until prices rise to new highs, as predicted by several analysts.

Disclaimer - OBN is an informational website which aims to give the latest blockchain related news to the readers. Articles on OBN should not be considered as investment advice. Trading cryptocurrencies is a high-risk investment, every user is advised to consult an expert before making any decisions.