The past seven (7) days have been a rigorous rollercoaster ride for the world’s most popular and largest decentralized digital currency; Bitcoin. The Cryptocurrency saw its price drop from 21 thousand United States Dollars (which is around 2.6 million Kenyan Shillings) on Monday the 7th of November 2022, to a low of around 15,580 United States Dollars (which is around 1.9 million Kenyan Shillings) by Wednesday the 9th of November 2022.
It and the cryptocurrency market in general have however, seen some level of regain and sustain.
The current outflow of Bitcoin from centralized exchanges is due in large extents, to the fall of the world’s second largest cryptocurrency exchange; FTX.
The exchange which is owned by Sam Bankman-Fried, fell after it was hit with severe liquidity pressure.
Read Also: Visa Ends All Global Debit Card Agreements With FTX
Its embezzlement of funds placed in its care by users also played a significant part in the collapse of the cryptocurrency exchange.
Investors in the cryptocurrency space have now begun to second guess the safety of their funds and assets kept on centralized exchanges. The overall trust in said centralized platforms is now at a quite severe low point. This has resulted in the outflow of user assets from the exchanges.
Data from cryptocurrency market data application; Coinglass, revealed that a total of 192,340 Bitcoin valued at 3.23 billion United States Dollars (which is around 393.74 Kenyan Shillings when converted) have been removed from centralized exchanges in the last one (1) week.
According to the data from Coinglass said coins were subsequently moved to numerous wallets for storage. The current outflow from exchanges, is also higher than what was the case in the past thirty (30) days. This has made observers believe it is as a result of a drop in confidence from investors and the current situation at FTX.
Read Also: Binance Pauses All FTX Token Deposits Over Suspicious 342 Million Dollar FTT Movement
A more detailed breakdown revealed that Gemini had a total outflow of 13,270.80 Bitcoin currently valued at 223.38 million United States Dollars (which is around 27.24 billion Kenyan Shillings), Binance had a total outflow of 58,689.42 Bitcoin valued at 987.86 million United States Dollars (which is around 120.57 billion Kenyan Shillings), and Coinbase Pro had a total outflow of 70,101 Bitcoin valued at 1.2 billion United States Dollars (which is around 144 billion Kenyan Shillings).
Read Also: Crypto Market Drops As Binance Turns Down FTX Acquisition
The reverse was the case however, for other cryptocurrency exchanges like Huobi, Bitstamp, Bittrex and Bitfinex who all experienced an inflow of Bitcoin.
More and more cryptocurrency adopters are now opting to use decentralized platforms cold wallets and other self custody wallets to store their cryptocurrency assets and funds.
The Co-Founder and Chief Executive Officer (CEO) of Binance; Changpeng Zhao who is more popularly known as CZ in the crypto space suggested that all Cryptocurrency exchanges could carry out a Proof of Reserve as a way to regain the trust of users and also bring more total transparency with regards to user funds and assets.
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