Bitcoin exchange withdrawals sink to 7-month low as users forget FTX

Bitcoin (BTC) exchange users have forgotten all about the FTX scandal this Christmas, data shows.

According to on-chain analytics firm Glassnode, exchange outflows have now hit their lowest levels in over six months.

Still not your keys, still not your coins?

As Bitcoin volatility sets a new record low in what is being called “Do Nothing December,” exchange users’ habits are also rapidly adjusting to the current climate.

After seeing an overwhelming surge in light of the FTX meltdown, BTC withdrawals from exchange wallets have entirely reversed the spike which began around six weeks ago.

Having hit a peak of 142,788 BTC on Nov. 14, outflows from the trading platforms tracked by Glassnode have declined over ten times.

On Dec. 25, the latest date for which numbers are available, total exchange outflows came in at just 9,352 BTC — a drop of 93.5%.

*Bitcoin exchange outflows chart. Source: Glassnode*

More than that, the last time that outflows were so low on a daily basis was seven months ago in May.

As Cointelegraph reported, in the immediate aftermath of FTX, exchange reserves declined by over $3 billion in a single week.

Exchanges’ BTC balance stood at 2.252 million BTC on Christmas Day, a drop of nearly 21% versus the 2022 peak of 2.845 million BTC from January.

*Exchange BTC balance chart. Source: Glassnode*

BTC supply increasingly stationary

Record low volatility is meanwhile showing in on-chain data, with hodlers reluctant or in little need of moving coins.

Glassnode confirms that unspent transaction outputs (UTXOs) with a lifespan of between one week and one month have fallen to their lowest numbers in 15 months.

*Bitcoin UTXO annotated chart. Source: Glassnode/ Twitter*

The popular HODL Waves metric, which groups UTXOs by age, shows a rise in coins which last moved 1-2 years ago over the course of December.

*Bitcoin HODL Waves chart (screenshot). Source: Unchained Capital*

These now account for over 20% of the total BTC supply.

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