Investors withdrew 17 thousand bitcoins from exchanges during the day. There are 3 reasons

Investors withdrew 17 thousand bitcoins from exchanges during the day. There are 3 reasons

By Kluma | InterestingCrypto | 20 May 2020

Major players took cryptocurrency from leading trading platforms such as Bitfinex, Coinbase and Binance. The outflow of capital from the platforms has been going on for several months

Over the past few hours, at least 17 thousand BTC were withdrawn from trading platforms, at the current exchange rate, this is almost $170 million. The cryptocurrency was sent to anonymous wallets and other platforms, transactions were recorded by the Twitter bot Whale Alert.

First of all, investors took the coins from the Bitfinex platform. Yesterday, may 19, 5000 thousand BTC was withdrawn from it. Then 1593 BTC was withdrawn from the Coinbase platform. Another 1500 BTC was transferred from Xapo to OKEx. After that, 5809 BTC was sent from the latter, of which 2645 BTC was received on the Binance exchange. And then it sent 3058 BTC to an unknown address.

The outflow of BTC from trading platforms began a few months ago. For example, from mid-April to may 14, the reserves of the Bitfinex exchange decreased from 205 thousand to 134 thousand BTC. Stocks of the first cryptocurrency on the BitMEX and Huobi platforms also decreased.

One of the reasons for the outflow of capital from exchanges may be the reluctance of investors to sell bitcoin reserves at current prices. This opinion was voiced by specialists of the analytical company Glassnode. They noted that in April, the reserves of sites decreased by 10% compared to the maximum set at the beginning of the year.

Another possible reason was given by the head of the analytical Department of AMarkets Artem Deev. According to him, the outflow of funds from the sites may be related to the current economic crisis. Major players are getting rid of cryptocurrency, as it is a risky investment, and transferring capital to protective assets such as gold and US government bonds.

"At the beginning of the crisis, investors were confident that the cryptocurrency would compete with Fiat currencies and become a stable asset in the future. There was a significant increase in the value of BTC above $10 thousand. But when the world economy entered a state of recession, and oil prices began to fall, the bitcoin exchange rate fell-at the moment below $3800. Then the currency stabilized around $6,400 and in may began to rise above $9,000. This happened against the backdrop of optimism and confidence that the leading States will be able to quickly cope with the pandemic. However, the vaccine has not yet been developed, borders are closed, and countries ' economies are under pressure. Therefore, investors withdraw funds from risky assets, investing in gold and American government debt, " Deev suggested.

The reason for the outflow of capital from exchanges may also be the distrust of users. For example, yesterday, may 19, trading on the BitMEX platform suddenly stopped due to a failure, and it was unavailable to traders for an hour. The day before yesterday, a lawsuit was filed against the company, and in November, it leaked the data of its customers.

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