$2.6 Billion in BTC Left Cryptocurrency Exchanges in March: Glassnode Data
Billions of BTC are leaving exchanges, and here are the main reasons:
Huge volume of BTC left centralized exchanges followed by glass node in March. According to the on-chain data provided, traders and investors have removed about 61,000 BTC from trading platforms to their private wallets or exchanged the cryptocurrency for fiat.
Investors lose faith in stock markets
One of the main reasons for the increased outflow from exchanges may be related to the general decline in confidence in centralized and decentralized exchanges. While the constant danger of falling victim to hackers still exists, it may not be the main reason for large outflows of money.
Source: glass node
Account restrictions and over-regulation were among the hottest topics in the space as major exchanges began shutting down certain accounts on their platform. The CEO of the Kraken Exchange, who warned his users about possible regulations for cryptocurrency exchanges and urged users to withdraw their funds in private wallets, added more fuel to the fire.
Most of the cryptocurrency exchanges in the space use hot wallet technologies and store the private keys of users’ wallets on their service or certain databases, which are often attacked by hackers. But even if exchanges do a good job of defending their clients’ property, they still have to follow the orders of regulators in the countries in which they operate.
Traders choose alternative options
Due to the questionable performance of the cryptocurrency market since late 2021, a large part of the traders and investors switched to alternative ways of making money in the industry such as liquidity farming, strike and others.
Recently, the Ethereum network celebrated another milestone with 10 million ETH locked in the Ethereum 2.0 strike contract as the blockchain moves closer to making a full move to the PoS network.