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50,000 Bitcoin were withdrawn from Coinbase on Nov. 24 and 25, marking the third-largest withdrawal from the exchange.

A total of 100,000 Bitcoin (BTC) were withdrawn from Coinbase in the past two days, marking the third-largest BTC withdrawal in Coinbase’s history.

Two withdrawals worth 50K

The chart below shows the BTC withdrawals and deposits in Coinbase on a daily basis since the beginning of the year.

On Nov.24, 50,000 BTC were withdrawn from Coinbase. The amount equated to over $800 million at the time, which marked the second-largest BTC withdrawal from Coinbase in 2022. The next day, on Nov. 25, another 50,000 BTC withdrawal took place, which equates to over $825 million at the time of writing.

Considering that Coinbase is preferred mainly by large U.S. institutions, it can be said that they are taking advantage of the affordable prices and accumulating BTC, as the on-chain data indicates that the bottom of the bear market cycle might be near.

Third-largest withdrawal in Coinbase

The chart below represents Coinbase’s BTC deposits and withdrawals since the exchange was launched in 2014.

With the second 50,000 BTC withdrawal, Coinbase reserves lost more than $1.5 billion worth of BTC in two days, which currently marks the third-largest BTC withdrawal in Coinbase’s history.

According to the chart, the most significant withdrawal was recorded in late 2017, and the second-largest one took place in mid-2022 after the Terra (Terra) collapse.

It’s not just Coinbase

The data shows that Coinbase is not the only exchange experiencing large BTC withdrawals. The chart below demonstrates the BTC balance on all exchanges since January 2018, and a significant downfall can be seen since January 2022.

According to the data, the balance on decentralized exchanges has fallen below 12% for the first time since January 2018.

https://cryptoslate.com/bitcoin-worth-1-5b-withdrawn-from-coinbase-in-48-hours/

As depositors take larger steps to protect their wealth and secure holdings, will it be enough to stem a tide of the high number of electronic hacks we've witnessed in 2022?

It seems that the latest trend of large withdrawals came about in 2017. Perhaps after the bitfinex and tether investigations were launched. It could take time for consumer confidence to be restored in crypto exchanges.

It seems that we're witnessing a mass migration of funds being pulled from exchanges in the wake of the FTX incident.

I panicked initially when I saw this news before I realized it was nothing near hacking, and this cools my mind. It was just a withdrawal and might be a panic withdrawal though after the FTX palaver. It might be that the person or persons were trying to move their investments to fiat or another wallet. But I don't see a reason why anyone would move to another wallet from Coinbase since they are better regulated.

The data shows that Coinbase is not the only exchange experiencing large BTC withdrawals. The chart below demonstrates the BTC balance on all exchanges since January 2018, and a significant downfall can be seen since January 2022.

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It seems that we're witnessing a mass migration of funds being pulled from exchanges in the wake of the FTX incident.

Amazingly enough binance and others affiliated with FTX are still plying their wares, in the hope of attracting investor capital.

As depositors take larger steps to protect their wealth and secure holdings, will it be enough to stem a tide of the high number of electronic hacks we've witnessed in 2022?

It seems that the latest trend of large withdrawals came about in 2017. Perhaps after the bitfinex and tether investigations were launched. It could take time for consumer confidence to be restored in crypto exchanges.

How about the last few days Coinbase revealed their bitcoin balance?

Well, that is good news --people have learned from what FTX and Binance drama and they are now afraid to store their funds on any centralized platforms.

But I don't think this has an effect on the market, as I see bitcoin does not have a reaction but instead it maintained on the price range where bitcoin struggled to resist.

Is there any news on Binance on how much bitcoin has been withdrawn?

It seems that the latest trend of large withdrawals came about in 2017. Perhaps after the bitfinex and tether investigations were launched. It could take time for consumer confidence to be restored in crypto exchanges.

That's a great start. Now we need the other 38 billion to withdraw to self-custody so that Coinbase will hold 0 bitcoin and will be unable to continue to suppress the price with their fractional reserves.

Why Coinbase?

And how do you expect that to be possible? You literarily mean no trading should occur on exchanges again, but that is not possible.

Coinbase is a good exchange. But normally, all coins that are not used for trading on exchanges should be moved to a noncustodial wallet.

The entire situation with centralized crypto exchanges can be summarized in one sentence.
"We can't live with them, we can't live without them."

But I don't see a reason why anyone would move to another wallet from Coinbase since they are better regulated.

With the happenings around the world on Crypto exchanges, one would ask if truely blockchain is decentralized?

Well at that time there were only investigations on Tether and Tether never collapsed.

We can absolutely live without them. I have never once used a centralized exchange in my entire life, and yet I would wager that I am more involved in the bitcoin ecosystem than 99% of other bitcoin users given that I use and spend bitcoin as a currency almost daily. Yes, we might not see the same fiat denominated prices without centralized exchanges, but bitcoin itself does just fine (better, in fact) without them.

Spreading panic should not be something serious members of this forum deal with - and this topic is nothing but exactly that.

Please can you suggest a decentralized solution for we traders as we depend on those exchanges?

Can anyone confirm that this is a transaction from Coinbase to an external wallet, or is it an internal transaction? It wouldn't be the first time that panic was created around such transactions, only to find out later that the funds still remained with the same company, just at a different coin address.

In addition, Coinbase has announced that it keeps about 2 million BTC in its possession, so if it is correct or approximately correct, I ask the question, what does 5% mean in the bigger picture? Spreading panic should not be something serious members of this forum deal with - and this topic is nothing but exactly that.

Some people still will never learn their lessons, they prefer to learn the hard way.

What I don't understand is how can someone be holding such amount of BTC in an exchange and still sleep at night?
Considering the inherent risk attached to keeping tokens on exchange, I will say it is rather unwise to leave your funds in an exchange, no matter how secure they claim to be.

Some people still will never learn their lessons, they prefer to learn the hard way.

What I don't understand is how can someone be holding such amount of BTC in an exchange and still sleep at night?

there was a topic i read here the other day about self custody being more difficult to achieve than third party custody

that is the idea that a lot of people have and so they sleep well because they think the third party service is their safest option in keeping their BTC.

Isn't it amazing that centralized exchanges have managed to convince people that writing down 12 words is outside of their capacity, and they need to give all their coins to complete strangers instead.

Pretty much every centralized exchange has lost coins in a hack at some point, so such an opinion is just provably wrong. Or take a look at FTX as a shining example - one of the biggest crypto exchange in existence, and court documents show that they were storing private keys on an unsecured group email account. This is the kind of "security" you get with centralized exchanges.

I don't see it that way. Rather, it is a good sign that more and more people are finally waking up to the mistake that is centralized exchanges and are pulling their money off said exchanges.

Amazingly enough binance and others affiliated with FTX are still plying their wares, in the hope of attracting investor capital.

What I don't understand is how can someone be holding such amount of BTC in an exchange and still sleep at night?

Partly confirmed since the balance on Coinbase wallet decreases as per the graph shown on the article. The balance will be just the same if the withdrawal is just an internal transfer besides many says that this is just a show off from Coinbase to give confidence to there user that they can still handle huge amount withdrawal without a problem since they lately boast that they are holding huge amount of Bitcoin according to there CEO tweet.

what is happening with binance that every day is like this, I do not see any information on their twitter, I have tried all my browsers and it does the same thing, I have already turned off the computer several times, I have even tested it with VPN and nothing, what is happening? I hope it's nothing serious or is this just on my side?

but the fact is that CEX has millions of BTC in their possession according to what they are announcing these days - or maybe they are lying to us about it?

I hope it's nothing serious or is this just on my side?

It's certain that some exchanges are lying about how much they have in reserve, but you are right - they still hold millions of bitcoin.

According to a report published by data source xxx, Coinbase’s cold wallets contained roughly 970,000 BTC, worth about $8 million, at the beginning of this year. A graph shared with xxx readers shows that the exchange’s bitcoin holdings have been growing steadily.

In a series of tweets, Coinbase CEO Brian Armstrong says the largest US-based crypto exchange platform holds about 2 million BTC, which translates to $33.12 billion at Bitcoin’s current price of $16,561.

As long as centralized exchanges exist there will be people who are dumb enough to leave their coins on them, but we should be happy to see that number reducing.

What I don't understand is how can someone be holding such amount of BTC in an exchange and still sleep at night?

So more then likely some big institution pulled their coins out, probably to calm their investors. Proving that they have it and it is safe. Not a big deal, and between the article and what we have discussed here spent more time discussing a non event then it's worth.

If, picking on a random brokerage, E*Trade pulled a bunch of cash out of one bank to bring it in house it would not even make the press.
If a investment fund switched some back end stuff around as to who held their investments if they did not do it in house it might make a line or 2 of text in places like Bloomberg.

-Dave

Isn't it amazing that centralized exchanges have managed to convince people that writing down 12 words is outside of their capacity, and they need to give all their coins to complete strangers instead.

Pretty much every centralized exchange has lost coins in a hack at some point, so such an opinion is just provably wrong. Or take a look at FTX as a shining example - one of the biggest crypto exchange in existence, and court documents show that they were storing private keys on an unsecured group email account. This is the kind of "security" you get with centralized exchanges.

Exchange owners storing private keys in company emails isn't appropriate, it's what FTX did, other exchanges are professional with stronger security.

coinbase shouldn't need to make news like this, because it will have a negative effect on centralized exchanges enough FTX and binance are making noise in the exchange world.

That's a big assumption to make, and one which is not true. FTX was the second biggest exchange in the world. Everyone assumed they would have decent security, and instead they had an unsecured group email account. Everyone assumed Coinbase had good security, and instead their data was being sold by a third party. Everyone assumed that Binance, that Bitfinex, that KuCoin all had good security, and all have been hacked and had coins stolen.

The fact is that we have absolutely no idea what security exchanges do or do not have. You are trusting complete strangers, who have shown time and time again that they are grossly incompetent. Handing over coins or data to any exchange is a huge risk.

Big brands NordVPN & ProtonVPN publish transparent audit reports every year to gain trust.

but can third party published audits of exchanges be considered proof of security?

Coinbase does not publish this news, you need to know that we are using blockchain, which means everything is transparent and public, everyone can find it on the on-chain data. I don't see this as negative news, it shows that people have awakened and are more concerned about the safety of their property. Besides, this will also cause exchanges to try to improve their services if they still want to stay in business.

50,000 Bitcoin were withdrawn from Coinbase on Nov. 24 and 25, marking the third-largest withdrawal from the exchange.

A total of 100,000 Bitcoin (BTC) were withdrawn from Coinbase in the past two days, marking the third-largest BTC withdrawal in Coinbase’s history.

Two withdrawals worth 50K

There are two points I would make about third party audits. First of all, they simply move the trust requirement. Instead of trusting the entity itself, you are now trusting the auditor. They still don't allow anything to be independently verified by the user themselves. And secondly, even if you do trust the auditor, they only show a snapshot at the time of the audit. Anything could have changed between then and now.

Not at all. In addition to the points I made above in regards to VPN providers, when it comes to exchanges, there are even more unknowns. The proof of reserves which many exchanges are starting to publish is easily tampered with or altered to make it appear more favorable to the exchange, and proof of reserves without proof of liabilities is absolutely meaningless.

There is no way for a user to ever verify completely the security, privacy, or solvency, of a third party they are using. The only way to do this is to keep your coins in your wallet.

Proofs of reserves & unexplained strange movements of funds will get published if they're audited.

Complete verification of solvency shouldn't be a problem to detect but audits can't stop exchanges being targeted.

And how do you know the proof of reserves is accurate? What's stopping an exchange taking out a loan the day before an audit and paying it back the day after? Or borrowing funds from one of their affiliated companies or entities? Or even just the CEO topping up the exchange wallets with their own funds prior to the audit. This exact thing has happened before with Bitfinex handing hundreds of millions of dollars of crypto to Tether on the very morning of their independent audits. And yet USDT continues to have a market cap of $65 billion, despite being a fractional reserve scam. Proof of reserves proves nothing.

- snip -

https://i.imgur.com/eStvNqy.jpg

Possible next target Coinbase, binance, blockfi and Kucoin

And how do you know the proof of reserves is accurate? What's stopping an exchange taking out a loan the day before an audit and paying it back the day after? Or borrowing funds from one of their affiliated companies or entities? Or even just the CEO topping up the exchange wallets with their own funds prior to the audit. This exact thing has happened before with Bitfinex handing hundreds of millions of dollars of crypto to Tether on the very morning of their independent audits. And yet USDT continues to have a market cap of $65 billion, despite being a fractional reserve scam. Proof of reserves proves nothing.

But without proof of liabilities, proof of reserves is meaningless. So an exchange proves they have 100,000 BTC in their wallets. What if they have 200,000 BTC in liabilities? What if they have huge outstanding loan repayments or debts they hide from the auditors? How do you even know you can trust the auditors?

It's all trust upon trust upon trust. There is no independent verification.

Hopefully the confidence is never restored.

If they've taken loans days just before the audit it's got to be noticed. If they've seen it they'll publish it.

there isn't a way to find out which exchanges have habits for boasting unverified figures.

Falsifying market cap isn't short of fraud.

USDT isn't secure if it's backed by one exchange but it's used most for bitcoin transactions.

Exchanges have been caught commit a huge number of far more illegal activities, from selling user data to insider trading to helping themselves to users' funds for their own purposes. A little bit of fudging the numbers isn't going to phase them.

USDT is insolvent and is not backed up 1-to-1 as they claim. This has been proven in court on more than one occasion. And yet it continues to be widely used. It makes no sense.

That's easy to understand USDT isn't safe so why don't traders see it?

Was the 100,000 BTC converted to USDT?

That's easy to understand USDT isn't safe so why don't traders see it?

The same reason people continue to use all manner of unsafe and risky platforms - greed.

The 100,000 figure I used above was simply an analogy. I was not using it in reference to USDT or any other specific platform.

Besides greed there is also another reason, some simply don't want to accept they are wrong, so after claiming for years that UST or Binance or Coinbase is safe and that nothing can happen they don't like to admit what they are doing is risky, it has worked in the past, till now everyone who warned was wrong, so they feel like they are right and they will be always right and the rest are simply just envious fear mongers.