Arcane Research found that a growing number of Bitcoin crypto token holders are removing their assets from centralized trading platforms.
It’s nothing new for investors to do this when the market reaches a point when nothing can be asserted with certainty and prices are plummeting like a black fever sweeping through cities and countries.
Arcane study, however, shows that the volume of cryptocurrency leaving centralized exchanges, particularly Bitcoin, is unprecedented. Investors have never done this no matter what challenges the leading cryptocurrency has encountered.
Many people have been moving their BTC tokens from centralized exchanges to cryptocurrency wallets over the past few months. Here’s some background on the problem, so you can appreciate how awful it really is.
More than 119,000 BTC tokens disappeared from centralized exchanges in June, another 96,000 were relocated by investors in July, and another 65,000 have vanished from crypto exchanges in August. These movements are related and not coincidental.
Popularity of decentralized cryptocurrency exchanges among Bitcoin investors is expected to rise.
Since the price of Bitcoin hasn’t been going up or showing any signs of recovery, many industry watchers believe that investors have resorted to transferring their crypto holdings from centralized exchanges into their own crypto wallets in an effort to stimulate trading activity. This will shake the crypto market’s right gears, resulting in a price increase for the industry standard cryptocurrency.
Yet some argue that this movement away from centralized exchanges and into individual wallets is due to individuals having lost faith in the sector as a whole following the failures of exchanges like Celsius, Babel Finance, Voyager Digital, and others.
There is a possibility that going forward, all Bitcoin trading (buying and selling) will occur directly on the decentralized exchanges.
