Traders Have Been Withdrawing Crypto from Exchanges Since Fall of 2022: Santiment
The volume of Bitcoin and Ethereum held in exchange wallets is currently at the lowest level in the past few years.
Santiment has found that total BTC marketplace holdings amount to 5.7% of the overall circulating supply. This figure was last seen in December 2017. Similarly, 10.1% of Ether is in exchange wallets, matching its all-time low from 2015.
It appears investors are buying and immediately withdrawing crypto assets into OTC (over-the-counter) storage, as they are hesitant to sell in the near future.
This rush to offline storage is likely a response to the FTX exchange debacle of November 2022. By taking the cryptocurrency off of exchanges, investors are protecting themselves from a potential crisis that could cause another freeze of customer funds.
There has also been a marked increase in cumulative Ethereum deposits recently, reaching a new high of 18 million ETH.
