BTC has been on a roller coaster before, but it has always been noted for its resilience.
When Binance, the first CEX (centralized exchange), finds itself in troubled waters, there are reasons to wonder what happens to the world’s first cryptocurrency, Bitcoin (BTC). In fact, the market is hungover at the end of the year, after the announcement of massive withdrawals on Binance.
According to Nansen, the Blockchain analytics platform, $3 billion has been stolen from the trading whale. In addition, the impact of this information was immediate in the entire market, in particular in Bitcoin (BTC).
The year 2022 is definitely not a time for the crypto market. The FTX episode is not over yet, and we are already diving into the Binance one. The queen of cryptos also toasts. Therefore, you see its price plummet when it had started a nice rally at the beginning of the week.
The Tree that Hides the Nansen Forest
Earlier this week, a $3.66 billion worth of fiat currency left Binance. This data relates to Ethereum and ERC-20 token movements only.
In fact, the amount of bitcoins withdrawn from Binance shows a 30-day positive balance. However, on closer inspection, 80,577 BTC (around $1.3 billion) have been withdrawn from Binance in the last seven days, according to Coinglass.
It is clear that Binance wins the gold medal in terms of net weekly Bitcoin withdrawals on a CEX. However, this downward movement is a broader phenomenon, already spanning several months.
The number of bitcoins present on exchanges is constantly declining. Thus, 1.9 million BTC are in circulation on exchanges, so it follows that 90% of bitcoins are therefore illiquid today.
When Will the Bitcoin Phoenix Bird Rise from Its Ashes?
The announcement of the slowdown in inflation in the US gave a boost to the price of Bitcoin (BTC), which even reached $17,785 on December 14. However, this comeback did not last long. News of the massive withdrawals on Binance sent the coin created by Satoshi Nakamoto into a downward spiral again.
However, what at first appears to be another blow to the cryptocurrency market may actually be the source of its recovery. In fact, long-term BTC holders are bringing a new dynamic to the availability of bitcoin (BTC). This reality is even more instructive, as the number of active BTC addresses declines.
To conclude, since its creation 14 years ago, bitcoin (BTC) continues to give way to the debate. Especially since the context of the bear market gives rise to all the speculation. Lo and behold though, the coin created by Satoshi Nakamoto is over a decade old with worldwide adoption. We are far from being a matter for a few scholars. The reality of this course of unwinding bitcoin (BTC) is that you have already been on a roller coaster. However, it has always been noted for its resilience.
By Audy Castaneda
