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$2.6 Billion Worth of BTC Left Cryptocurrency Exchanges in March: Glassnode Data

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Tue, 03/22/2022 - 12:37
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Arman Shirinyan
Billions worth of BTC leaving exchanges, and here are main reasons
$2.6 Billion Worth of BTC Left Cryptocurrency Exchanges in March: Glassnode Data
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A massive volume of BTC left centralized exchanges tracked by Glassnode in March. According to the on-chain data provided, traders and investors removed approximately 61,000 BTC from trading platforms to their private wallets or exchanged the cryptocurrency for fiat.

Investors losing trust in exchanges

One of the main reasons for the increased exchange outflows could be tied to the general drop in trust in centralized and decentralized exchanges. While the constant danger of becoming a victim of hackers still exists in the space, it may not be the main reason for large funds outflows.

Bitcoin Outflows
Source: Glassnode

Account limitations and overregulation were among the hottest topics in the space as large exchanges started closing certain accounts on their platform. The CEO of the Kraken Exchange, who warned his users about potential regulation coming to cryptocurrency exchanges and urged users to withdraw their funds to private wallets, added more fuel to the fire.

Related
1.02 Billion SHIB Burned, 244.5 Million Added to Burn Pot for April 15: Details

Most cryptocurrency exchanges in the space use hot wallet technologies and store the private keys of users' wallets on their service or certain databases, which are ‌often attacked by hackers. But even when exchanges properly defend their clients' property, they still have to follow orders from regulators in the countries they function in.

Traders choose alternative options

Because of the questionable performance of the cryptocurrency market since the end of 2021, a large portion of traders and investors switched to alternative ways of earning money in the industry like liquidity farming, staking and others.

Recently, the Ethereum network celebrated a new milestone with 10 million ETH locked in the Ethereum 2.0 staking contract as the blockchain comes closer to the full switch to the PoS network.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.