The Bitcoin balances have been reduced to the lowest levels since November 2018. Glasssnode has collected the data in a graph that shows the current value of Bitcoins held by investors. This graph proves that a lot of balance is lost until now.
This is not a productive time for Bitcoin. As soon as the Black Thursday arrived, people started to make assumptions about withdrawn funds. Users are constantly withdrawing their funds since then and a massive amount of Bitcoin has left the exchange.
Approximately 300,000 BTC withdrawal can be concluded as a mass exodus. In the wake of global uncertainty, users don’t want to sell their assets anytime soon. The huge exodus has also occurred at the same time when Bitcoin hit the bull run from having a low value of $5000 to almost $12000.
This is however the condition of only a few exchanges. Not all exchanges have faced this sort of mass exodus. Some exchanges including Bitfinex only held 200,000 BTC before the Black Thursday.
Bitfinex users are withdrawing Bitcoin at a drastic speed. It has caused a 67% decrease in the Bitfinex exchange alone. A sudden withdrawal of Bitcoin has made clear that the investors are not sure about their investments.
Another shocking revelation about the Bitfinex exchange is the current level of Bitcoin in the exchange. As of March 2020, Bitfinex was holding 200,000 BTC. But after May, this number has quickly stepped down to 65,000.
As a result, it can be termed as an extreme loss for Bitfinex. As far as the period for this scenario is concerned, it didn’t happen overnight. When everyone was expecting a sudden rise in the BTC investors and Bitcoin price, only the later increased.
But Why A Massive Withdrawal?
BTC investors are thinking about the after-effects of the COVID-19 outspread. Since everyone wants to secure their investment, BTC investors are no different. It can be a defensive step to save themselves from a sudden decrease in the price of digital currency.
Along with sudden withdrawal around the Black Thursday, a sudden rise can also be seen in the investment of other coins. Ethereum, for instance, is experiencing a sudden massive gain in the investors. Investors are looking for other methods to invest such as gold and other metals. Everyone is experimenting with their investing strategy to find out what works better and how they can avoid the loss.