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For the first time since 2018, Bitcoin’s trading balance fell below 2.5 million

October 23, 2020

On October 20, 2020 The amount of Bitcoin (BTC) held on major exchanges fell below 2.5 million BTC for the first time in two years.

Source: Glass knot.

The co-founder of Nexo, Antoni Trenchev, meant for Cointelegraph that this trend is being driven by the world finally realizing that only Bitcoin offers solid monetary policy:

“”[La gente] It’s starting to become clear what some of us have known for a while: BTC is the only solid monetary policy right now and cannot afford to stray from the top performing asset of the decade. “

He also noted that the community is moving more towards self-governing solutions, including platforms like Nexus, where you can “Borrow profitably against your assets instead of selling them.” Cointelegraph noticed this yesterday The supply of Bitcoin is currently more widespread than ever.

For the first time since 2018, Bitcoin’s trading balance fell below 2.5 million
For the first time since 2018, Bitcoin’s trading balance fell below 2.5 million

Alex Mashinsky, Co-founder of the crypto lending platform, Celsius, said that to Cointelegraph The exodus is likely to continue unless the exchanges offer their clients better terms:

“As long as the exchanges refuse to give their customers more, they will leave them and go back to Celsius. Since launching two years ago, we’ve exceeded $ 2.7 billion in deposits. We wouldn’t grow that fast if we didn’t do more for our customers than. ” Exchange. “

Source: Glass knot.

In the graph above we can see that this change has not affected all exchanges equally. While BitMEX and Bitfinex balances have been decimated and decreased by more than half. Binance has continued to amass additional funds. Coinbase’s registers have also remained largely intact.

Source: Digital asset data.

He DeFi growth it could also have contributed to this trend. The amount of Bitcoin locked on Ethereum via wBTC and renBTC currently exceeds 130,000. Just a few months ago, these numbers were negligible. Another possible culprit is institutional adoption. Besides the growth Grayscale bitcoin trust continuum, Open capital companies like MicroStrategy and Square have started adding crypto assets to their treasuries.

The biggest losers: the exchanges that led the trend. Source: Cointelegraph, Glass knot.

There seems to be a general trend for users to withdraw their bitcoin from escrow exchanges or maybe Some major exchanges simply lose their customers’ trust. The latter can be a reasonable conclusion, Since only three platforms (BitMEX, Huobi and Bitfinex) were responsible for most of the trend: their balances decreased by 390,000 BTC, which made them responsible for nearly 80% of the total decrease.