On-chain analytics firm Glassnode says these bitcoins have arrived in cold storage, which are non-internet crypto wallets. These include hardware wallets or paper wallets.
In terms of market capitalization, the price of Bitcoin, the largest cryptocurrency, has fallen drastically this year. It is estimated that around 5.5 lakh bitcoins have migrated from crypto exchanges in the current year. At the current price of bitcoin at $16,858, they are valued at over $9.2 billion.
On-chain analytics firm Glassnode says these bitcoins have arrived in cold storage, which are non-internet crypto wallets. These include hardware wallets or paper wallets. Some big crypto firms have gone bankrupt this year. The bankruptcy of FTX, one of the major crypto exchanges, has caused a lot of damage to this market. Clients’ funds were used by modifying FTX’s software. The exchange’s chief engineer changed the code to allow Alameda Research, the firm of FTX founder Sam Bankman Fried, to sell its assets even if it took a loss on the borrowed money. This exemption allowed the firm to borrow funds from FTX regardless of the value of the collateral. Apart from this, the constant attacks of hackers on crypto exchanges and firms have also increased the concern of crypto investors. To keep cryptocurrencies safe, some investors transfer them to hardware or paper wallets or sell them and withdraw their funds.
There are just over 19.2 million tokens in the market out of a total fixed supply of approximately 21 million bitcoin tokens. Glassnode reported that bitcoin reserves stored on crypto exchanges account for less than 12 percent of its supply in circulation. Around 70,000 bitcoins, 90,000 bitcoins and two million bitcoins are reported to have been moved from crypto exchanges FTX, Binance and Coinbase respectively.
The market capitalization of crypto was more than $3 trillion last year, which has come down to around $808 billion this year. Nearly three quarters of people who bought bitcoin over the past seven years have suffered losses. This information comes from a study by economists at the Bank of International Settlements of data on cryptocurrency investors from about 95 countries over the past seven years. During this period, the price of bitcoin rose from around $250 to a high of around $68,000 in November last year.
