People holding Bitcoin on FTX are acting with record speed to get their cryptocurrency off the failing trading platform and onto their own personal wallets. According to Glassnode, Bitcoin investors are reacting to the collapse of FTC, with a record overall transaction rate of 106,000 BTC per month.
FTX is a cryptocurrency trading platform based in the Bahamas. Since 11 November the company has been in bankruptcy. As a prominent exchange, many BTC investors are now concerned about the viability of trading services and looking to move their investments into personal wallets.
Such a mass movement of crypto has rarely been seen before. Outflows are rare on this scale since Bitcoin was started following the 2008 Financial Crisis.
By using their own self-custody wallet, BTC holders receive a private key of seed phrase that provides access to the wallet. If this information is lost, the wallet becomes unrecoverable. Even so, this is a good holding method because no third party can spend of freeze your BTC.
Glassnode also reports that stablecoins are being sent to exchanges at a record rate. In fact, over $1 billion in stablecoins has gone into exchanges since FTX collapsed. This means investors are giving up stablecoins to purchase Bitcoin and other cryptos.
Earlier this year, we reported on the prediction that the crypto market will retract. Many smaller coins will simply disappear while large currencies like Bitcoin and Ethereum will survive. There are currently over 19,000 cryptocurrencies and the market cannot sustain them all.
Larger currencies can withstand falling prices, but the smaller options are seeing their worth collapse and they will become obsolete.
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