Due to FTX’s demise, approximately $1.5 billion was withdrawn from crypto exchanges, making it the greatest outflow of bitcoin. The trapped exchange had to declare bankruptcy because of a lack of funds. The FTX debacle stunned its clientele, leading to a decline in demand for crypto-based profits.
Investors pulled $1.5 billion worth of tokens from numerous exchanges in November, according to data from CryptoCompare. Almost 15% of the whole fund was removed. In November, an all-time high of 91,363 tokens, worth approximately $1.5 billion, were withdrawn from exchanges, including Kraken, Coinbase, and Binance. The report does not specify whether the cryptocurrency was sold or moved to individual wallets.
This is a significant difference compared to the same period in 2021 when investors withdrew 3,846 bitcoin from exchanges. In 2018, Bitcoin lost almost 63% of its value. Its current price of roughly $17,000 is a long cry from its all-time high of $69,0021, which is expected to be reached in November 2021. The failure of the FTX cryptocurrency exchange was the last straw after two major lenders, Celsius Network and Voyager Digital, declared bankruptcy earlier this year.
Wave Financial CEO David Siemer believes that improved government laws on engaging with crypto and more sophisticated asset managers managing the movement of significant quantities of assets are necessary for the sector to grow and recover. The CEO continued, saying it is now obvious that businesses and platforms can no longer get away with concealing their reserves and keeping investors and customers in the dark.