Bitcoin Moving Off Exchanges in Record Numbers, But Stablecoin Reserves Grow Rapidly

Glassnode, a leading crypto analytics business, confirms that Bitcoin (BTC) holders are withdrawing from crypto exchanges at an alarming rate. The insights platform highlights on Twitter that Bitcoin investors have taken control of their BTC holdings following the collapse of crypto exchange FTX.

According to Glassnode, crypto exchanges are now experiencing a major outflow of Bitcoin at a rate of more than $1.75 billion in BTC every month.

With Bitcoin soaring off crypto exchanges, Glassnode observes that all wallet cohorts, from shrimp to whales, are experiencing significant increases in their BTC balances.

Looking at stablecoins, Glassnode notes that traders filled crypto exchanges with dollar-pegged crypto assets following the FTX crash, suggesting that market players are preparing to purchase the dip.

The rapid change in trader behavior, Glassnode says, has boosted stablecoin balances across crypto exchanges to a new all-time high of $41.18 billion.

In conclusion, the report states that there appears to be capital waiting to be invested in the form of stablecoins:

“On net, there appears to be a transition in investor holdings.

1. Stablecoins are flowing into exchanges
2. Trustless assets like BTC and ETH are flowing out

This leads to a net increase in stablecoin ‘buying power’ on exchanges of ~$4 billion per month.”