Bitcoin is flowing out of crypto exchanges

Hodlers have been moving their precious bitcoin out of exchanges like never before following this summer's collapse of major crypto lenders. These events undoubtedly damaged the lenders' trustworthiness, but are hodlers also losing trust in exchanges?
Source: CoinMetrics

There is now 2.1 million bitcoin deposited at exchanges, but this number has declined for seven out of eight months in 2022. The year started with slight negative exchange net flows from January to April but then saw significant net inflows in May.

The exchange inflow period didn't last long. At the end of May, the crypto market got hit by the Terra Luna collapse, setting in motion a cascade lasting throughout June and July, where some of the crypto market's biggest risk-takers imploded. Among those were the crypto hedge fund Three Arrows Capital and several crypto lenders.

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