Bitcoin Holdings on Bitfinex Reduce by One-Third Within a Month

Reports have it that Bitcoin holdings on one of the renowned cryptocurrency exchange Bitfinex have reduced by 66k over the previous four weeks.

As of Mar. 17 this year, the number of Bitcoins held in the exchange was 200,140. However, the number declined by 33 percent to only 134,091 Bitcoin by Apr. 13. This huge decline is similar to the experience with another exchange BitMEX, which recorded a 38 percent reduction in its number of Bitcoin holdings following the massive flash crash that happened in the middle of March.

Generally, in recent times, there has been a trend of users moving their digital assets away from exchanges, but many of them recorded minor reductions. As for another exchange, Poloniex, it was able to maintain its Bitcoin holdings during the same period.

Although the number of Bitcoin holdings decreased on Bitfinex, the number of Ethereum deposits increased by over 100k during the same time. Looking from another viewpoint, if we convert it to US dollar, only 15 percent of the reduced number of Bitcoin will be made up by the increase in Ether.

Regarding the cause of this general trend, it is likely that some factors come together to make it happen. The first factor is the possibility of exchange users looking forward to the appreciation of Bitcoin price in view of the imminent halving and moving Bitcoin away from exchanges for better long-term safekeeping.

The second factor might be a variation on flight to quality, involving users moving assets from exchanges with less than stellar reputations to exchanges that they think are more trustworthy.

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Source: Cryptopress.

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