Market volatility has been impacted by the chaos caused by the FTX scandal. Investors have lost faith in exchanges and institutions holding their funds, and have responded by withdrawing more than $3 billion in Bitcoin from exchanges.
Coinglass data and reports from Cointelegraph show that around 190,000 Bitcoin were withdrawn from exchanges within the seven days following the announcement of FTX’s liquidity crisis. At the current Bitcoin price, the 190,000. BTC is approximately $3 billion. Investors began to worry about the safety of their funds on the exchanges as the FTX crisis unfolded. All walks of life had different opinions. They advised users to avoid custodial vaults and to have control over their crypto assets. Since then, regulators have increased their scrutiny of the entire crypto industry. On-chain data shows that investors have drawn Bitcoin at a much higher pace over the past seven day, something not seen since April 2021. Most of them chose non-custodial wallets. As of November 12, there were more than 70,000 addresses that had been withdrawn.
Checkmate, a senior analyst at Glassnode said:

The best way to estimate exchange balances is to use wallet clustering. They are more likely than an overestimate to have a lower bound.

He said that three exchanges had “particularly strange” Bitcoin balance readouts, including Crypto.com, Gate.io and Huobi.

These fund flows between exchanges include real customers + FTX/Alameda. It is difficult to separate and thus looks as relative-to–balance.

Changpeng Zhao, Binance CEO, decided to stop buying FTX after an investigation into its finances. He also warned that the FTX fallout could affect another crypto exchange. He said, “Stay away!”

It is a sign of trouble if an exchange has to move large amounts crypto before or after they have shown their wallet addresses. Stay away. Stay #SAFU
— CZ Binance (@cz_binance), November 13, 2022

Disclaimer: This article is intended for informational purposes only. This article is not intended to be used for legal, tax, investment or financial advice.

  

Market volatility has been heightened by the chaos caused by the FTX scandal. Over $3 billion worth of Bitcoin has been withdrawn by investors since the news about FTX’s liquidity crisis broke. Coinglass data and reports from Cointelegraph show that around 190,000 Bitcoin were withdrawn from exchanges within the past seven days. At the current Bitcoin price, the 190,000. BTC is approximately $3 billion. Investors began to worry about the safety of their funds on the exchanges as the FTX crisis unfolded. All walks of life had different opinions. They advised users to avoid custodial vaults and to have control over their crypto assets. Since then, regulators have increased their scrutiny of the entire crypto industry. On-chain data shows that investors have drawn Bitcoin at a much higher pace over the past seven day, something not seen since April 2021. Most of them chose non-custodial wallets. Checkmate, a senior analyst at Glassnode said that as of November 12, there were over 70,000 addresses to withdraw Bitcoin.
The best way to estimate exchange balances is to use wallet clustering. They are more likely than an overestimate to have a lower bound.
He said that three exchanges had “particularly strange” Bitcoin balance readouts, including Crypto.com, Gate.io and Huobi.
These fund flows between exchanges include real customers + FTX/Alameda. It is difficult to separate and thus looks as relative-to–balance.
Changpeng Zhao, Binance CEO, decided to stop buying FTX after an investigation into its finances. He also warned that the FTX fallout could affect another crypto exchange. He said, “Stay away.” This article is not intended to be used for legal, tax, investment or financial advice.