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BTC Records $2 Billion in Daily Withdrawals From Different Exchanges

A recent report says that $2 billion has been removed from cryptocurrency exchanges as daily withdrawals of Bitcoin have risen to unprecedented levels. Data from the on-chain analytics company Glassnode is what led to this discovery, which illuminates the substantial money flow in the cryptocurrency market.

The data says that the withdrawals hit a record-breaking $2 billion on March 1st alone, indicating a significant change in investor behavior in the digital assets industry. The unexpected spike in Bitcoin withdrawals is indicative of an increasing trend among investors to transfer their holdings from centralized exchanges to other platforms, such as private wallets.

Several variables has been linked to  massive withdrawal of Bitcoin from exchanges. Growing worries about the safety of money kept on centralized platforms, particularly in light of recent high-profile exchange thefts and security breaches, had been marked as major reason.

Glassnode Explains Investor Behavior, As BTC Maintains its $60,000 Position 

Analyzing the development, William Suberg, a market watcher with Cointelegraph, explains that the increase in Bitcoin withdrawals may also point to a wider movement in the cryptocurrency market toward long-term investing approaches.

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Suberg added that rather than actively trading their Bitcoin on exchanges, investors may be choosing to hold onto their cryptocurrency for the long term as it is increasingly seen as a store of value similar to digital gold and a hedge against inflation.

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With the growing popularity and institutional use of Bitcoin, investors are looking for more ways to protect and secure their holdings in self-custodied, decentralized wallets. Glassnode further emphasizes how crucial on-chain analytics is to comprehending investor behavior and market developments in the cryptocurrency field.

As of press time, the BTC is trading at $62,758.84, which is a 1.24% increase from yesterday. The market capitalization closed at $1,232,546,589,907, after recording a trading volume of $24,911,178,126, a 14.95% decline. However, the BTC total market supply stands at 19,643,762 BTC, with the maximum supply still at 21,000,000 BTC. 

2,286,347 BTC Currently on Different Exchanges, Withdrawal Trend Changes Narrative

As of press time, Bitcoin is still operating smoothly, with transactions being completed quickly and securely on the blockchain, despite the notable withdrawals from exchanges. The trend of growing Bitcoin withdrawals has the potential to change the cryptocurrency market’s environment in the upcoming months as investors look for other ways to hold and manage their digital assets.

As of March 2, Glassnode put the cumulative available Bitcoin assets on different exchanges at 2,286,347 BTC, valued at  $142.5 billion. This was said to be the lowest recorded so far from March  2018 when Bitcoin exchanged with dollar for $8,000.

A recent market update by Quicktakeh has captured the recent changes in the Unspent Transaction Output (UTXO) period. According to research published on Cointelegraph, to reduce the counterparty risk connected with centralized exchanges, investors are moving toward a greater degree of ownership and control over digital assets.

$200 Million Spent on Coinbase Pro Van Straten Claims

According to the update, there has been the involvement of newer and older coins that have become dormant for over six months and have suddenly woken up. The report also stated that new investors are coming in, and more will properly get interested in the future.

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According to a Data and Research Analyst with CryptoSlate, James Van Straten, in an X post made on March 3, the cryptocurrency insights company has recorded a billion dollar Bitcoin withdrawals. Van Straten in his post,  also noted the United States position on spot BTC ETFs, while excluding the $200 million which he claimed has already been spent on Coinbase Pro who serves as the custodian. 

Meanwhile, historical reports (as published on CoinDesk) have shown that the amount of Bitcoin in cryptocurrency exchanges once dropped by 4%, representing 2 million BTC, valued at $54.5 billion on August 31, 2023. According to CryptoQuant, this is the least decline since  January 2018.


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Brenda Collins

Brenda Collins is a seasoned crypto news writer with a deep passion for blockchain technology and its transformative potential. With years of experience in the industry, she has honed her skills in delivering concise and insightful analysis, making complex concepts accessible to a wide audience. Brenda's dedication to staying up-to-date with the latest developments in the crypto world ensures her readers receive accurate and timely information.

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