Record volumes of bitcoin are leaving the exchange due to a new cryptocurrency crash


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Record volumes of bitcoin are leaving the exchange due to a new cryptocurrency crash
Record volumes of bitcoin are leaving the exchange due to a new cryptocurrency crash

Investors worry about The collapse of FTX as a result, record volumes of Bitcoin left exchanges around the world.

Bitcoin Magazine noted that 136,992 BTC were withdrawn in the last 30 days, adding that this is “historic”. This number corresponds to 0.7% of supply in circulation and net cash flows are the highest since 2016.

The previous spike in leaks was around June, at the height of the Terra explosion, when around 120,000 units were pulled from exchanges. cryptocurrencies.

Glassnode data shows that holders are heeding the warnings, as the percentage of Bitcoin held on exchanges fell from 13% to 12.2% as rumors of FTX issues surfaced.

Will Bitcoin be able to take advantage of the current situation?

When news of FTX’s mismanagement became public, bitcoin price experienced significant sales in response to the allegations.

The move from high to low marked a 28% drop for the leading cryptocurrency, with a low of $15,500 reached on November 21.

Since the bottom was hit, there have been signs of price recovery, and rose by 3.8 percent during the week. At the same time, the buying pressure continued today and BTC rose to $16,500.

However, macroeconomic conditions remain the same, meaning that the likelihood of the bulls making a significant push above $20,000 and beyond based on current price movements is slim.

Investors are currently ready to reverse the Fed’s rate hike policy before investing capital.

For his part, the chairman of the Fed, Jerome Powell, on November 2 raised the federal funds rate for the fourth straight time by 75 basis points to between 3.75% and 4%.

READ
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Markets are currently three to four in favor of another 50 basis point hike, making them optimistic that the Fed will slow the pace of rate hikes.

Risk of infection and domino-like fall

Amid FTX Contagion, a cryptocurrency lending company Genesis warned that it needed $1,000 million in capital to avoid bankruptcy. The company is considered the main Bitcoin OTC bureau.

Until now, after asking for help from Binance and Apollo, the struggling company still hasn’t raised the money it says it needs to stay solvent.

It is currently unknown what went wrong. But Leigh Drogen, chief information officer at investment management firm Starkiller Capital, said Genesis’ problems stemmed from a loan agreement with parent company Digital Capital Group (DCG).

However, DCG CEO Barry Silbert played down the scale of the liquidity crisis, saying Genesis would not be able to pay until 2023. May. will pay DCG 575 million USD, and this year the group’s revenue is expected to reach 800 million.

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Source: news.google.com

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