Investors deduct record quantities of coins from crypto exchanges

investors deduct Bitcoin in record height of crypto exchanges, since the collapse of Sam Bankman-Frieds FTX fuels fears about the security of their assets.

ftx, once the darling of the crypto industry, applied for insolvency protection in mid-November after an 8 billion dollar hole had appeared in his balance sheet.

The new CEO John Ray described a lack of basic risk management, and Bankman-Fried has granted bad internal controls. His rapid decline has alerted investors who keep their assets on other centralized crypto borns and act, which led to record withdrawals from Bitcoin, the most frequently traded crypto token. FTX failed last month with potentially more than 1 million creditors, including many who had left assets on the stock exchange.

Last month, investors drew 91,363 Bitcoin worth almost 1.5 billion USD, based on the average price of around $ 16,400 in November, from centralized stock exchanges such as Binance, Kraken and Coinbase. According to data from CryptoCcare, this was the largest Bitcoin outflow since the start of the records.
it is unclear whether the coins are sold or moved to private wallets.

The rush to exit comes because the Bitcoin price has fallen 64 percent this year and is currently being traded around $ 17,000.

The withdrawals in October were also high with 75,294 Bitcoin when crypto dealers deducted their funds after a crisis-rich summer that included the collapse of the lenders for digital assets Celsius and Voyager Digital.

competing stock exchanges have hurried to distance themselves and their practices from the chaos within the FTX in order to calm down the nerves of the customers and to limit potential infection of the market.

However, the records of the records underline the skepticism of investors compared to Bitcoin, since the industry of digital assets is exposed to an increased examination by global supervisory authorities.

In the first seven days of December, 4,545 Bitcoin were deducted from centralized stock exchanges, compared to tributaries of 3,846 Bitcoin in the same period of the previous year.

As a sign of the adverse effects of the collapse of FTX on the once rival stock exchanges, the rating agency Moody’s provided the bonds of the coin base listed in the USA for review for a downgrading and referred to "the increasing probability of continuing declines in the trade volume and customer loyalty, two essential sales drivers".

"Falling prices for crypto assets will restrict the ability of companies to procure capital and dampen customer demand," Moody’s analysts wrote this week. They added that significantly lower crypto prices "will worsen the credit quality of centralized financial companies".

"While Bitcoin sales are slowing down, the damage has already been done," wrote Eric Robertsen, Global Head of Research at the Bank Standard Chartered, which was aimed at Asia, this week.

He predicted that the pain for crypto investors will stop until well into 2023. "More and more crypto companies and exchanges can be found with inadequate liquidity, which leads to further bankruptcy and a collapse of the trust of the investors in digital assets," he added.