Onchain detective Zachxbt reported that an entity moved 1.96 million avalanche (AVAX) to various exchanges and subsequently withdrew millions in bitcoin (BTC) after the transaction. As of 8 a.m. EDT today, AVAX has declined almost 10% in the last 24 hours. AVAX Declines Amid Onchain Analyst’s Discovery of Major Transfers Zachxbt, a well-known onchain analyst, […]
Bitcoin News
Liquid Staking Derivatives Lose Ground With Over 380,000 ETH Withdrawn in April
Following a significant downturn in March, liquid staking derivatives (LSD) protocols experienced another withdrawal of 380,000 ether, valued at roughly .17 billion, from leading LSD platforms since April 1, 2024. Ethereum Exodus: .17 Billion Pulled From LSD Platforms In the initial two weeks of April, a notable reduction of 380,000 ether was observed in the […]
Bitcoin News
Celsius Fights To Reclaim $2 Billion Withdrawn Prior To Bankruptcy Declaration
According to a Bloomberg report, Celsius Network, the crypto platform that filed for bankruptcy in July 2022, demands that major customers who collectively withdrew over billion before the bankruptcy return those funds to avoid potential litigation.
An oversight committee formed during Celsius’s Chapter 11 case has begun contacting customers who withdrew more than 0,000 during the period leading up to the company’s bankruptcy filing. This recovery effort aims to repay creditors who did not withdraw funds from Celsius.
Settlement Offered To Celsius Users
Per the report, the oversight committee’s recovery process will impact around 2% of Celsius users who, in total, withdrew approximately 40% of the platform’s assets within the 90 days preceding the Chapter 11 filing.
Celsius reported billion in assets, 1.7 million registered users, and 300,000 active users with account balances exceeding 0 at the time of bankruptcy.
Notably, the oversight committee has offered customers who may face clawback suits a settlement option, providing them with a “favorable rate” if they choose to settle.
Customers who opt for settlement would have their potential liabilities determined based on the value of their assets at the time of their 2022 withdrawals. This means that settling customers would retain any appreciation in the value of their digital assets resulting from the surge in crypto prices over the past year.
Legal Consequences If Settlement Offer Is Declined
According to Bloomberg, customers who decline to settle may be subject to significantly more liability through potential litigation. The committee’s letter warns customers about the potential consequences of not accepting the settlement offer.
In November, a bankruptcy judge approved Celsius’ plan to distribute billions of dollars in assets and transform into a creditor-owned Bitcoin mining firm. According to a court filing by the company’s lawyers, Celsius has already distributed around billion in assets.
Overall, Celsius Network’s oversight committee is pursuing the recovery of over billion in withdrawals made by major customers shortly before the company filed for bankruptcy. By offering settlement options based on the value of assets at the time of withdrawal, Celsius aims to alleviate potential litigation and expedite the repayment of creditors.
As the process unfolds, impacted customers decide to settle potential liabilities or face potential litigation with potentially higher consequences.
Currently, the network’s native token, CEL, is trading at .1862, reflecting a significant year-to-date decline of over 49%.
In shorter time frames, the token has experienced a 12% decline in the last 24 hours, a 32% decline in the last week, and a 27% decline in the last fourteen days, highlighting the limited interest and lack of confidence among investors in the CEL token.
Featured image from Shutterstock, chart from TradingView.com
Arbitrum Proposal to Fund Tornado Cash Developers Defense Withdrawn
A proposal aiming to contribute to funding the legal defense of the developers of Tornado Cash, the Ethereum-based mixing platform, was removed by the Arbitrum community over apparent legal concerns. Devansh Mehta, lead of the working group of the Arbitrum treasury, criticized the move, stating that there was “absolutely nothing wrong with paying for the […]
Bitcoin News
Over $28 Million In SHIB Withdrawn From Exchanges Ahead Of Shibarium Launch
The Shibarium Layer-2 upgrade is launching any day now, and it looks like some big SHIB players are making moves ahead of the launch. According to on-chain data, over million in SHIB tokens have been withdrawn from major crypto exchanges in the just concluded month of July.
Massive Withdrawals Signal Investor Interest in Shibarium
According to data shared on Twitter by crypto analyst Ali Martinez, backed up by on-chain chart data from IntoTheBlock, around 3.30 trillion SHIB were withdrawn from known crypto exchanges in July, the highest SHIB withdrawal rate in recent months. The chart’s data also shows that the circulating supply of the token within exchanges fell from 86.69 trillion to around 83 trillion by the end of the month.
July 19 saw the most significant withdrawal from exchanges, with more than two trillion tokens going into unknown wallets. According to on-chain data from @WhaleAlert, an Ethereum whale transferred 2.4 trillion SHIB tokens worth .7 million from Binance.US into an unknown wallet. With the price of the token up by 10% since then, the whale’s SHIB holding is now valued at more than million.
These massive SHIB withdrawals can be traced to the announcement of the Layer 2 blockchain, Shibarium, which is expected to help minimize gas fees and increase the transaction speeds of the blockchain.
While there’s still no official launch date for Shibarium yet, the high rate of withdrawals likely signals that SHIB investors are reducing the selling pressure and want to hold their tokens in private wallets in hopes of what the Shibarium launch might bring.
Withdrawals From Exchanges Reduces Selling Pressure On SHIB
When SHIB is withdrawn from exchanges, it can’t be readily sold. This reduces the available supply of SHIB for sale, putting upward pressure on the price. When whales transfer such high amounts into self-custody, it frequently results in massive price changes and a rise in interest from other investors. This flurry of withdrawal into self-custody demonstrates the strength of the SHIB community and their faith in SHIB’s future.
The meme-inspired token has gained quite a lot of community and has led the entire crypto industry in gains for the past two weeks. Shibarium’s launch is anticipated and SHIB holders want to make sure they capitalize on everything the new scaling solution will offer.
At the time of writing, SHIB’s market cap is nearing billion after it recently retook the 14th position by market cap. The meme coin is trading at .000008314 and is up by 7.55% in the past seven days.
Bitcoin Exodus: Over 855,000 BTC Withdrawn From Exchanges Since July 2020
According to current data, about 2,086,034 bitcoins were held on exchanges as of July 11, 2023. This figure is 154,160 bitcoins less than the number held on centralized trading platforms 72 days earlier, on April 30. The number of bitcoins on exchanges has significantly dropped since July 31, 2020, when nearly 3 million bitcoins were held in exchange reserves.
Centralized Crypto Exchanges Face Bitcoin Drain
The number of bitcoins held in exchange reserves has steadily decreased over the past two years and 11 months, data from cryptoquant.com shows. On July 31, 2020, metrics indicated that 2,941,655 bitcoins were held on exchanges. As of today, the number has decreased to 2,086,034. This means that over the past 1,075 days, customers have removed 855,621 bitcoins from centralized trading platforms.
Since April 30, 2023, approximately 154,160 bitcoins have been removed from exchanges, which then held 2,240,194 bitcoins in reserves. Bitcoin reserve balance data from coinglass.com shows that Binance experienced a reduction of 18,566.71 bitcoins over the past 30 days. During the same period, Coinbase saw a withdrawal of 38,253.59 bitcoins, and OKX had about 9,403 bitcoins withdrawn. According to coinglass.com, the San Francisco-based crypto exchange Kraken had 8,544 bitcoins withdrawn in the past month.
When fewer bitcoins are available for purchase on exchanges, the principles of supply and demand typically suggest that if supply decreases and demand remains steady or increases, the price should rise. This has often been a self-fulfilling prophecy in the Bitcoin universe, as the perception of BTC becoming an increasingly scarce resource tends to drive the price up through supply squeezes. Moreover, in 289 days, following the halving event, the total supply of new bitcoins entering the market will significantly decrease.
The data also indicates that the remaining circulating supply of BTC not held by exchanges is managed by market makers, third-party custodians using cold storage services for institutional and high-net-worth clients, layer two (L2) solutions like Lightning Network, and numerous individuals utilizing self-custodial wallets in hot or cold wallet settings. Recent trends show a shift towards these alternatives over storing funds on exchanges. The collapse of platforms such as FTX and Voyager has only intensified the withdrawal of bitcoin from these businesses.
What do you think about the number of bitcoin removed from exchanges? Share your thoughts and opinions about this subject in the comments section below.
SEC Lawsuits Fuel Bitcoin and Ethereum Exodus From Exchanges: Nearly $1 Billion Withdrawn in 7 Days
It has been six days since Binance faced a lawsuit from the U.S. Securities and Exchange Commission (SEC), and five days since Coinbase encountered a similar legal challenge. In the wake of these events, a substantial amount of bitcoin and ethereum has been withdrawn from exchanges, with data revealing that nearly 6 million worth of ETH and BTC has been removed from centralized trading platforms.
Exchanges Witness Significant Bitcoin and Ethereum Outflows in Wake of SEC Lawsuits
Less than a week has passed since the SEC took action against two of the world’s largest exchanges, with Binance’s lawsuit occurring on June 5, 2023, and Coinbase’s lawsuit following suit on June 6. As previously reported by Bitcoin.com News, record outflows from Binance have been observed, and cryptocurrency enthusiasts have been extensively withdrawing bitcoin (BTC) and ethereum (ETH) from centralized exchanges.
According to data collected from cryptoquant.com, 2.155 million BTC were held on centralized trading platforms the day prior to Binance’s lawsuit. Since then, however, 22,263 BTC valued at 4.15 million using current exchange rates have been withdrawn. As of 8:30 a.m. Eastern Time (ET) on Sunday morning, there were 2.133 million BTC held by various exchanges. A similar trend is evident in ethereum (ETH) withdrawals, as 15.96 million ETH were held by exchanges last Sunday on June 4, 2023.
A Game of Musical Chairs: While Binance’s Weekly Outflow Surged, Other Exchanges Record Significant Inflows
Presently, that figure has decreased to 15.72 million ether, indicating that approximately 241,366 ETH valued at 2.78 million was removed using today’s ether exchange rates. In total, between bitcoin and ethereum, 6.94 million in value has been withdrawn from centralized trading platforms within the past week. A multitude of individuals have transferred funds away from exchanges, but data shows some deposited this cryptocurrency into different trading platforms. It appears as though some BTC whales are engaging in a game of musical chairs.
For example, data from coinglass.com indicates that Binance experienced withdrawals totaling 40,427 BTC during the past seven days, with 7,008 BTC removed in the last 24 hours alone. In contrast, Coinbase witnessed an addition of 2,959 BTC to its reserves this week, though 20 BTC were withdrawn in the past day. While Binance experienced outflows, the subsequent top four exchanges saw noticeable inflows. After Coinbase, Bitfinex received deposits of 1,556 BTC, Okx added 3,772 BTC to its reserves, and Gemini saw an influx of around 1,070 BTC within the past week.
What do you think about the bitcoin and ethereum being removed from exchanges over the past week? Share your thoughts and opinions about this subject in the comments section below.
Stablecoin Supply Plummets After Depegging Event: $7.4B Dollar-Pegged Tokens Withdrawn From Circulation
During the past 11 days, over 7 billion USDC stablecoins have been withdrawn from circulation, with most of the redemptions occurring following the depegging event of USDC on March 11, 2023. Furthermore, since March 6, a total of 439.48 million BUSD stablecoins have been redeemed.
Stablecoin Depegging Event Triggers Billions in Redemptions
The stablecoin landscape has undergone significant changes this month after a stablecoin depegging event took place on March 11. During this time, USDC dropped to a low of .877 per coin, and half a dozen other stablecoins also depegged from the U.S. dollar value on the same day. However, USDC and the other stablecoins have since been re-pegged, and Circle’s stablecoin is trading at on various centralized trading platforms on Friday. On March 6, approximately 43.89 billion USDC were in circulation, and as of 11 days later, 7,089,389,744 USDC have been redeemed.
As of March 17, 2023, metrics show that over the past 30 days, the number of USDC in circulation has decreased by 10.2%. According to coingecko.com’s stablecoin market data, there are currently approximately 36.80 billion USDC stablecoins in circulation. During the depegging event, USDC had double the volume recorded today, which is ,328,716,602 in global USDC trade volume over the past 24 hours. Over the past day, BUSD’s 24-hour trade volume surpassed USDC, which has the third-largest stablecoin trade volume.
On Friday afternoon (ET), data showed that BUSD had a 24-hour global trade volume of ,289,546,285 across various exchanges. An archive.org snapshot from 11 days ago, on March 6, indicates that 439,484,014 BUSD had been redeemed. At that time, approximately 8,689,408,012 BUSD were in circulation, while today the number has dropped to 8,249,923,998. According to Nansen’s proof-of-reserve data, Binance holds 7.42 billion BUSD. Coingecko.com’s stablecoin market data shows that over the past 30 days, the number of BUSD in circulation has decreased by 46.3%.
While 7.528 billion USDC and BUSD have been removed from the stablecoin economy, tether (USDT), the largest stablecoin by market capitalization, has seen an 8.7% increase in the number of coins in circulation. Tether now has an overall market valuation of approximately .29 billion, with 75.17 billion USDT in circulation. Furthermore, on Friday, tether’s .38 billion in global trade volume outshined every other coin in the entire crypto economy in terms of 24-hour settled trades. BUSD and USDC hold the second and third-largest stablecoin volumes, respectively.
What do you think the future holds for stablecoins after the recent depegging event? Will they regain their stability, or will their value continue to fluctuate? Share your thoughts in the comments below.
Ethereum Sees Record Daily Volume Withdrawn From Centralized Exchanges
Exchange supply in the crypto market has been down across the board, and Ethereum has been no exception. The digital asset has grown in popularity due to the rise of decentralized finance (DeFi). Due to its token being the primary mode of payment on the protocols and Ethereum being the largest smart contracts platform in the market. This has led to increased fate in the asset by investors. Many of whom see the price of ETH hitting as high as ,000 before the year runs out.
Related Reading | Cathie Wood Reiterates 0K Bitcoin Call, Reveals Ethereum Rebalancing
As sentiments have skewed more into the positive for the asset, hold sentiments around ETH have risen. This is evidenced in the current exchange balance levels. 2021 has seen a declining trend in exchange reserves of the digital asset, and recently, outflows from exchanges have gone up again. This time marking record outflows in the span of a day.
Ethereum Outflows In A Day Totals .2 Billion
A recent report from IntoTheBlock showed that Ethereum saw outflows from centralized exchanges totaling .2 billion in a single day. IntoTheBlock is a data analytics platform that provides insights into the crypto market. The number represents the highest amount of ETH to leave exchanges in a 24-hour time frame. Beating the previous record that was billion leaving exchanges in a day.
Related Reading | TA: Ethereum Consolidates, What Could Spark A Fresh Rally
The net amount of $ETH leaving exchanges just hit a new record
Over .2B worth of $ETH left centralized exchanges yesterday
Last time B+ left CEXs, #Ethereum increased by 60% within 30 days pic.twitter.com/wfRuX11Rtk
— IntoTheBlock (@intotheblock) September 16, 2021
It has been reported that both Bitcoin and Ethereum exchange reserves have continued to plummet despite recent price highs. With numbers this low, it shows that investors are taking their assets off exchanges for personal safekeeping. Indicating that users are not selling off their holdings to take profits.
ETH exchange outflows total .2 billion in one day | Source: IntoTheBlock
Exchange reserves for bitcoin are now only 6.5% of its entire supply and Ethereum reserves on exchanges are about 15.7% of its total supply. Trends indicate that this number will likely dwindle over the next several months.
What This Means For ETH Price
This record amount leaving centralized exchanges holds some interesting implications for the digital asset. The last time that much Ethereum left exchanges, the price of ETH witnessed a massive surge that saw the price of the asset grow over 60% of its value. If history repeats itself again, then the price of ETH is headed for a new all-time, likely reaching up to ,500 this time around.
Exchange reserves plummeting can lead to a supply squeeze that would send the price shooting higher. Once the reserves deplete enough to the point where demand on the exchanges is exceeding the supply of coins available, then another bull run is imminent in the future of the asset.
ETH still trading above ,400 | Source: ETHUSD on TradingView.com
Currently, Ethereum is still trading above ,400 at a price of ,457. It is still trending lower than its 24-hour highs, but movements show a return into the green before the trading day officially opens.
Featured image from Decrypt, chart from TradingView.com
NewsBTC
CBOE May Have Withdrawn Bitcoin ETF Filing to Avoid Automatic Rejection
The advent of a U.S.-based, fully-regulated Bitcoin (BTC) exchange-traded fund (ETF) has long been a hope for crypto’s most fervent dreamers. Yet, these dreams, deemed quixotic by most, was quashed on Wednesday, as reports arose that the foremost cryptocurrency ETF application was withdrawn from the care of the (partially-defunct) U.S. Securities and Exchange Commission (SEC).
Related Reading: 58% of US Investors Would Invest in Bitcoin via ETF: Major Hedge Fund
CBOE Pulls Out Of VanEck Bitcoin ETF Deal
On Wednesday afternoon, the SEC released one of the most important crypto-related documents to-date. The two-page document, authored by SEC deputy secretary Eduardo A. Aleman, revealed that the Chicago Board Options Exchange (CBOE) had withdrawn its proposed rule change that would have facilitated the listing of VanEck and SolidX’s collaborative Bitcoin ETF.
Therefore, the exchange, U.S.’ largest options market, effectively killed the proposal, which garnered mounds of support heading into 2018’s year-end. This document was filed on January 22nd, just earlier today.
Crypto’s analysts, industry commentators, and researchers quickly took to Twitter to touch on this unfortunate occurrence. Jake Chervinsky, a crypto-friendly attorney based in Washington, D.C., explained that the withdrawal “implies” that CBOE and its partners were already expecting an eventual denial.
CBOE has withdrawn the VanEck/SolidX bitcoin ETF proposal (https://t.co/812Ym7U7Hh).
They haven't given a reason yet, but withdrawal implies that they expected denial & didn't want another SEC order setting bad precedent for the future.
There will be no bitcoin ETF in Q1 2019.
— Jake Chervinsky (@jchervinsky) January 23, 2019
Chervinsky, who has quickly become a leading Bitcoin ETF commentator, added that the CBOE was likely acting in crypto’s favor, as it “didn’t want another SEC order setting a bad precedent for the future.”
Long story short, the Kobre & Kim lawyer made it clear that there will be no formal approval of a Bitcoin ETF in Q1 of 2019.
U.S. Government Shutdown?
While Chervinsky’s logic is sound, more speculation has raged regarding the application’s denial. More specifically, thoughts surrounding the ongoing U.S. shutdown, which has entered its second month, were rife.
Some claimed that if the ETF was approved by default, due to the SEC’s potential inability to issue a proper denial, the government entity would take swift action to take down the VanEck initiative. On the other hand, the SEC might have had to issue an automatic denial. Both of these scenarios would have likely dealt a larger blow than CBOE’s Wednesday withdrawal.
According to a Twitter user, who cited a purported Wednesday CNBC interview with VanEck chief Jan, the company claimed that the withdrawal of the proposed rule change was related to fears that the application wouldn’t get a green light. The Twitter user added that VanEck claimed that it needs more time to convince the SEC and other regulatory incumbents that Bitcoin’s market conditions can adequately support an ETF vehicle.
Jan Van Eck stated on air on CNBC ETF that it was because it wasnt getting passed and they needed more time to convince SEC about overseas bitcoin trading issues.
— JV (@JVWVU1) January 23, 2019
A tweet from Gabor Gurbacs, the head of VanEck’s crypto division, recently corroborated this. Gurbacs claimed that his firm still has ambitions to work with stakeholders and market makers to create a healthy ecosystem for such an investment instrument.
Interestingly, the crypto market has barely reacted to this news. At the time of writing, BTC has held above ,550, while altcoins have also stood the ground. Yet, considering former crypto ETF developments, a move lower could hit the broader industry in the near future.
This news comes just days after Bitwise Asset Management and Wilshire Phoenix filed Bitcoin-related ETF proposals to the American financial regulator. Japan’s Financial Services Agency (FSA) has also made comments on crypto exchange-traded vehicles, claiming that it currently isn’t looking into approving such an offering, contrary to other reports.
This is breaking news, but NewsBTC will be sure to keep you in the loop in the hours and days to keep. Keep on checking in.
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