At the start of the week, U.S. spot bitcoin exchange-traded funds experienced their seventh consecutive day of net outflows, losing 4.45 million during Monday’s trading session. Grayscale’s Bitcoin Trust (GBTC) was impacted most, seeing approximately million in outflows. GBTC Leads Outflow as Bitcoin ETFs See Continued Decline On Monday, another day of outflows hit […]
Bitcoin News
Ethereum Withdrawals From Coinbase Top $1.2 Billion, What’s Going On?
Ethereum has seen a number of notable withdrawals that suggests that crypto whales are expecting a recovery in price. These large withdrawals has caused the ETH balances on centralized exchanges to fall to their lowest level since 2016.
336,000 ETH Withdrawn From Exchanges
Crypto analyst Ash Crypto took to X (formerly Twitter) to reveal a notable change in the amount of ETH that is being held on centralized exchanges currently. Notably, there has been a marked increase in the withdrawals of small and large investors alike, leading to the highest withdrawal trend of 2024 so far.
The report focuses on the withdrawals from the Coinbase exchange, which is the largest crypto exchange in the United States. The uptick in the withdrawal trend saw a whopping 336,000 ETH withdrawn from the exchange’s wallets in just 48 hours. This translates to the highest withdrawal trend from the exchange so far this year.
However, Coinbase wasn’t the only crypto exchange hit hard by the Ethereum withdrawals as the cumulative exchange addresses saw their ETH balances fall drastically. As the on-chain tracker Santiment revealed in a report, the total ETH held on centralized exchange wallets has fallen 8.6% in the last two weeks alone.
These withdrawals have greatly impacted the exchange balances, causing them to fall to their lowest point in 8 years. This means that the last time that the exchange balances were this low was back in 2016, which is three bull markets ago.
Will This Propel Ethereum Price To ,000?
Naturally, the withdrawal of Ethereum from exchanges is bullish given that this is a trend that suggests investors are choosing to hold their Ethereum coins rather than sell them. If coins were moving the other direction and being deposited on exchanges instead, it would’ve been bearish for the price as it meant that investors were looking to offload their holdings for profit.
Crypto analyst Ash Crypto shares the sentiment that the withdrawals are bullish for the price. According to the analyst, with Spot Ethereum ETFs set to start trading in 2024 in addition to this, it means that the ETH price trading above ,000 is just a matter of time.
Presently, the ETH price is still closely following the Bitcoin trend. It has recovered above ,500 once more after initially falling below this support level on Thursday. Nonetheless, it continues to nurse losses on the weekly chart, with CoinMarketCap data showing a decline of 7.88%.
Liquid Staking Market in Flux: Withdrawals Hit Swell and Mantle, Reshuffling Landscape
Over the past 18 days, 27 distinct liquid staking derivatives (LSD) protocols have experienced withdrawals amounting to approximately 50,000 ether, valued at 6.72 million. The most significant reductions occurred in the LSDs Swell and Mantle, with Swell’s ether holdings decreasing by 23,078 ether since April 28, 2024. LSD Protocol Reductions Continue Despite Minor Gains for […]
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GBTC’s Heavy Withdrawals Result in Net $11.3M Outflow in US Bitcoin ETFs
The U.S. spot bitcoin exchange-traded funds (ETFs) witnessed an outflow of .3 million during Thursday’s trading sessions, following an inflow of .5 million on Wednesday. Although the majority of funds experienced inflows on Thursday, significant outflows from Grayscale’s Bitcoin Trust (GBTC) eclipsed these gains. Grayscale’s Losses Contrast With Gains On Thursday, GBTC experienced outflows that […]
Bitcoin News
Russian Crypto Exchange Unable to Process Withdrawals; Angry Users Try to Storm Offices
Approximately 50 users of Beribit, a Russian cryptocurrency exchange, recently tried to storm the company’s Moscow offices to demand their digital assets. Beribit’s management has attributed the delay in processing withdrawal requests to an audit initiated following the discovery of discrepancies in the exchange’s balance sheet. Balance Sheet Discrepancies About 50 users of the Russian […]
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Crypto Funds Mark 3rd Consecutive Weeks Of Outflows With $435 Million In Withdrawals
Crypto investment products are now going through rough times, as shown by inflow and outflow data. The crypto market is known for its volatile market cycles of ups and downs. Investment products are now struggling, and confidence in the space seems shaken. Crypto funds have now seen outflows for three straight weeks, with investors pulling 5 million from digital asset funds last week, according to CoinShares data. The recent stretch of outflows highlights the souring investor sentiment around some digital assets after a bull run earlier this year.
The Third Consecutive Week Of Crypto Withdrawals
CoinShares’ recent weekly report on digital asset fund flows has revealed the current sentiment among institutional investors. According to the report, investment funds witnessed 5 million in outflows last week to mark the biggest outflow since March. This comes on top of the 6 million and 6 million pulled out in the previous two weeks. Unsurprisingly, the majority of outflows came from Bitcoin funds. Of the total 5 million outflows, 3 million came from Bitcoin funds. Notably, a bulk of Bitcoin’s outflows (8 million) came from Spot Bitcoin exchange-traded funds (ETFs) in the US.
A look into previous crypto fund flow data since the beginning of the year shows that the majority of the inflows recorded in January, February, and March can be attributed to the Spot Bitcoin ETFs. These ETFs recorded so much inflow of funds that investment products were able to record their best year on record in less than three months.
However, inflows into these ETFs have declined in the past few weeks, and the largest digital asset is now failing to attract inflows amidst interest rate stagnation in the US market. Grayscale’s GBTC, in particular, continued its run of withdrawals, recording 0 million in outflows. At the same time, the other ETFs failed to attract inflows during the week in order to offset these withdrawals. BlackRock’s IBIT, for instance, failed to register inflows for three days straight last week, bringing its 71-day run of inflows to an end.
Ethereum, the altcoin king, also witnessed .4 million in outflows last week to offset inflows into other altcoins. Inflow data shows investors pouring .9 million worth of inflows into multi-coin investment products. Solana, Litecoin, XRP, Cardano, and Polkadot witnessed .1 million, .1 million, .4 million, .4 million, and .5 million in inflows, respectively. Short Bitcoin products also witnessed .3 million in inflows, showcasing a glimpse into investors’ sentiment.
What’s Next?
Investor sentiment can shift quickly in the fast-moving crypto space and the coming weeks may provide more clarity on the direction of crypto fund flows. Six Spot Bitcoin and Ether exchange-traded funds (ETFs) are set to launch in Hong Kong today April 30. Their entry into the Asian market has been long anticipated and is expected to surpass the first-day inflow record set by their counterparts in the US.
Ethereum Withdrawals From Exchanges Top 260,000 ETH – What This Means For Price
Ethereum withdraws from centralized exchanges have ramped up over the last week, suggesting a direction for investor sentiment during this time. Given the sheer volume of ETH withdrawn from these exchanges, it is prudent to try to understand what this could mean for the crypto’s price.
260,000 ETH Leaves Exchanges
Amid the uncertainty that has plagued the crypto market, Ethereum investors are making moves to secure their positions for better price prospects. Pseudonymous crypto technical analyst Titan of Crypto took to X (formerly Twitter) to share what Ethereum investors are doing about their holdings right.
Related Reading: Bitcoin Bears Risk Losing .2 Billion If BTC Price Reaches This Level
The post revealed that these investors have been withdrawing large amounts of ETH from centralized exchanges. In the one week period that was tracked, the report found that a total of 260,000 ETH were withdrawn from exchanges, which was worth almost 0 million at the time.
Crypto exchanges witnessed an outflow of over 260,000 #ETH equivalent to more than 1 million within the past 7 days.
It’s time for #Ethereum shine.
pic.twitter.com/jT1aocjvbI
— Titan of Crypto (@Washigorira) April 24, 2024
Now, exchange deposits and withdrawals are important for any cryptocurrency because it can often tell how investors are looking at that coin and what they are doing with their holdings. In the case of large deposits to centralized exchanges, it can be very bearish for the price because investors often deposit their coins in order to sell them as exchanges provide deep liquidity.
In contrast, withdrawals from exchanges suggest that investors are not looking to sell their ETH. Rather, they are accumulating the coins to wait for better prices before selling. Naturally, this is bullish for the Ethereum price as a diminished selling pressure gives room for the price to recover.
In this case, the withdrawals are bullish or the Ethereum price, as investors continue to accumulate. It also signals that investors are expecting a price breakout, and as the withdrawals ramp up, demand could surpass supply, leading to a surge in price.
Ethereum Headwinds Still Negative
Ethereum, while currently seeing some positive activity from investors, has still not turned completely bullish. For one, there has been a significant decline in its daily trading volume. According to data from Coinmarketcap, Ethereum’s trading volume is down approximately 20% in the last day.
This decline in volume suggests a declining interest from investors to actually trade the coin. As such, its price may be negatively affected as attention begins to shift elsewhere, with investors looking for better prospects.
Nevertheless, the cryptocurrency still looks bullish for the long term. Ethereum continues to closely mirror the price performance of Bitcoin, which is expected to go on a bull run following the successful completion of its fourth halving event.
For now, Ethereum continues to struggle to hold above ,100 with small gains of 0.18% in the last day. Over the last month, it has suffered multiple crashes, registering a 12.36% loss in the last 30 days.
Crypto Exchange Bitforex Suspends Withdrawals Following $56.5M Drain From Hot Wallets
Bitforex, a centralized cryptocurrency exchange, abruptly halted user withdrawals. This sudden action occurred just moments after a reported .5 million was removed from the platform’s hot wallets. According to online crypto investigator Zachxbt, the Bitforex team has ceased all communication with users. No Official Word From the Bitforex Team On Feb. 23, Bitforex, a cryptocurrency […]
Bitcoin News
Prohibition of Cash Withdrawals From VASPs Operated Accounts May Contradict Central Bank’s Cashless Policy — Nigerian Lawyer
Nigerian fintech lawyer Senator Ihenyen said the new central bank guidelines which bar the withdrawal of cash from accounts operated by virtual asset service providers (VASPs) seem “reasonable and understandable.” The lawyer however believes an “outright” prohibition of cash withdrawals from VASPs operated accounts may “be in conflict with the CBN’s own cashless policy.”
‘Fraudulent Leakages’
Nigerian fintech lawyer Senator Ihenyen has said that the new Central Bank of Nigeria (CBN) guidelines prohibiting cash withdrawals from bank accounts operated by virtual asset service providers may at first glance seem “reasonable and understandable.” Citing the central bank’s past circulars, Ihenyen suggested that the prohibition may be consistent with the CBN’s goal of combating the use of cash in funding criminal activities, as well as containing the high cost of handling cash.
The lawyer also highlighted the impact of cash transactions on monetary policy, as well as the effect of “fraudulent leakages” that crypto-to-fiat cash withdrawals may have on the financial system, as other possible reasons why the CBN has included the prohibition in the new guidelines.
As reported by Bitcoin.com News, the CBN has now lifted the prohibition which barred financial institutions from dealing with crypto entities. In its Dec. 22 circular, the Nigerian central bank suggested that the prohibition issued on Feb. 5, 2021, did not adhere to the Financial Action Task Force (FATF) recommendation 15 which calls for the regulation of VASPs to “prevent misuse of virtual assets for ML/TF/PF.”
Nevertheless, the latest CBN circular still stipulates that banks and other financial institutions are still “prohibited from holding, trading and/or transacting in virtual currencies on their own account.” This is in addition to the cash withdrawal prohibition.
CBN Cashless Policy
However, Ihenyen believes that the central bank should also consider its existing policy and other factors if it is genuinely interested in ensuring the soundness and safety of the financial system.
“An outright elimination of cash withdrawals from all accounts operated by VASPs may in fact be in conflict with the CBN’s own cashless policy. Under the cashless policy, cash withdrawal limits, not cash withdrawal prohibition, were introduced. In fact, the CBN cashless policy does not prohibit cash withdrawals above the stipulated limits,” Ihenyen told Bitcoin.com News.
The lawyer added that if these limits are exceeded, the cashless policy recommends imposing a cash handling fee. This policy applies to all accounts, including those operated by VASPs. However, government revenue-generation accounts, primary mortgage institutions, microfinance banks, and embassies are exempt from this policy.
Alternatively, VASPs may be required to hold all customer funds for transfers in a designated customer account, according to Ihenyen. Under this arrangement, customer funds will be domiciled with any deposit money bank in Nigeria.
This separation of the customer account from other accounts operated by the VASPs makes it easier for the VASP operator, the financial, and the CBN to manage the cash withdrawal limits regime.
Commenting on the importance of having engagements, the lawyer said:
“No doubt, as financial innovations evolve, regulation will gradually come along. With continual stakeholder engagements involving regulators, innovators, and users, I believe that the consumer—and Nigeria generally—will be the greatest winner.”
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Empty Accounts Discovered As Celsius Allows Crypto Withdrawals For Eligible Users
In a recent announcement, bankrupt crypto lender Celsius has initiated additional withdrawals for certain eligible custody users. However, it’s important to note that only specific custody assets are currently available for withdrawal, while other cryptocurrencies such as Bitcoin (BTC) remain inaccessible.
Starting November 29th, two groups, namely Class 6A General Custody Claims and Class 6B withdrawable custody claims, are eligible for withdrawals. Users within these groups have until February 28th to make their withdrawals.
Qualifying users can withdraw 72.5% of their crypto, minus transaction fees, provided they did not participate in a previous custody settlement.
Withdrawal Woes For Celsius Users
In the November 29 announcement, Celsius urged users to withdraw these assets from the Celsius app immediately and to keep personal records of relevant information, as the app will only be accessible for a limited time.
However, despite the withdrawal option, some Celsius users have experienced difficulties, according to reports on the X platform. This development comes as some 58,300 users hold approximately 0 million worth of assets that have been deemed “custodial assets” by the court.
According to user responses to the Celsius announcement, there have been reports of login failures on the platform. Users claim to be experiencing errors even after attempting to reinstall the Celsius app.
Additionally, some users have expressed concern that their Earn accounts are empty, further exacerbating the issues faced by former users of the crypto lending platform. One user specifically stated:
While my frozen portfolio balance is visible, my custody balance shows 0.
Transition To ‘Creditor-Owned’ Bitcoin Mining Company
As reported by our sister website, Bitcoinist Celsius recently obtained approval from the bankruptcy court for its proposal to transition into a creditor-owned Bitcoin mining company.
This plan involves repaying customers through a combination of crypto assets and stock in the newly established Bitcoin mining firm, which will be publicly listed.
The distribution of assets is expected to commence in early 2024, pending endorsement from the US Securities and Exchange Commission (SEC). However, Celsius acknowledges the possibility of liquidation if the crypto-mining proposal fails to materialize.
Celsius and its founder and CEO, Alex Mashinsky, have faced legal action from various entities, including the SEC, Federal Trade Commission (FTC), and the Commodity Futures Trading Commission (CFTC), for alleged misleading practices.
Celsius promptly settled with the FTC, agreeing to pay .7 billion once the bankruptcy proceedings concluded. Mashinsky has been charged with fraud; his criminal trial is scheduled this year.
Overall, the resolution of the reported issues faced by Celsius users remains uncertain, including the login difficulties and accounts displaying zero balances.
It is yet to be determined whether these occurrences are temporary or persistent and how the platform intends to address them. The future actions and measures Celsius took to rectify these concerns are still to be clarified.
The lender’s native token, CEL, is trading at .2533, up 5% in the past 24 hours. However, it is important to note that the token has yet to recover from its 2022 decline and remains down more than 50% year-to-date.
Featured image from Shutterstock, chart from TradingView.com