Bitcoin worth $1.5B withdrawn from Coinbase in 48 hours

[Hydrogen]

50,000 Bitcoin were withdrawn from Coinbase on Nov. 24 and 25, marking the third-largest withdrawal from the exchange.

A total of 100,000 Bitcoin (BTC) were withdrawn from Coinbase in the past two days, marking the third-largest BTC withdrawal in Coinbase’s history.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On Nov.24, 50,000 BTC were withdrawn from Coinbase.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https://cryptoslate.com/bitcoin-worth-1-5b-withdrawn-from-coinbase-in-48-hours/

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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.

[1714207112]

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[Upgrade00]

Holding that amount of bitcoins on an exchange is absolutely insane to begin with. It's surprising how many people are not perturbed by the risks and disadvantages of keeping funds in the control of a third party.

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?

Exchanges would continue to operate as there are still lots of users who entrust them with their funds and trade on their platforms, and ifbhey keep running, there would always be hackers trying to get in. How successful they would be would depend on how much security measures exchanges adopt in the wake of the hack waves.

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.

Hopefully the confidence is never restored.

[davis196]

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."
The centralized crypto exchanges are the main way to buy Bitcoin/altcoins for "the average Joe". We can't have a massive crypto bull wave/increase of demand without the crypto exchanges. On the other hand, centralized crypto exchanges are becoming a pain in the ass, with all those horror stories of people getting scammed and losing their life savings. Is mass regulation the solution? Maybe... Maybe not....
A more strict regulation might bring new problems, like reducing the privacy of all users and making the entire crypto industry more dependent of the governments.

[Cruxleo]

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

Funds are not only withdrawn, thankfully we might be going hand-in-hand with the exact ideology of the Bitcoin system being largely P2P. It is quite surprising that the CEXs since inception in 2010 has pulled a great wave in cryptocurrency such that it assumably appear to many as the only panacea to get cryptocurrencies. That makes me wonder how early bitcoiners embraced it to this prominence. The CEXs has over the years acted Like the traditional banks which only required to keep just 10% of customer's deposit, having 90% of it for use, which faults the ideology of Bitcoin, bringing limitations to the proposed breakout of alleged norms. The POR initiative, imo is still not enough to prove their conduct otherwise.

I think all efforts now should be geared towards broadcasting the need for personal wallets, improving the methods of P2P and providing more prominence to it, of which this forum has tried so much to do and could do more.

[blockman]

Whoever owns those sums of bitcoins on exchanges like Coinbase, they're just playing it to be safe. But with such news, it's not that big anymore when someone withdraws big amounts of bitcoin from exchanges.
The effect is just like when someone, a whale transfers huge amount of bitcoin from another address that's also being tracked by whales tracker/report.

[EarnOnVictor]

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 total amount is valued at $1.625B (100,000BTC) at that time and it's truly huge, but would be the last of the heavy transfers to witness this season.

[The Cryptovator]

People are afraid to hold funds on the exchange after so many incidents. Even I am not optimistic about putting money into Binance. Who knows if Binance or Coinbase will fall into line? It's all about the funds. To be honest, exchanges are destroying the crypto market. That is why we have recently seen a massive withdrawal from the exchange. Nobody wants to lose their hard-earned money. Feel better when assets are stored in a non-custodial wallet where we can control our funds without the involvement of a third party.

[Oshosondy]

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.

Yes, it is not hack at all, it can also happen. It is insane that such huge amount can be on an exchange and left alone there. It was moved from Coinbase which was refered to Coinbase exchange.

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.

We hope people continue to know the benefit of noncustodial wallet, but this may be about the person not ready to sell for fiat or convert to other assets, but to hold in long term.

[CryptSafe]

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/

....


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.

Investors and traders are now wiser to be washed and convinced to leaving their funds in third party exchanges. With the happenings around the world on Crypto exchanges, one would ask if truely blockchain is decentralized? The happenings has really casted doubt in the minds of people about Crypto which has given room for lots of statement about Crypto going as far as people and government justifying their claims as regards Bitcoin. I think this is one too many of the panicked investors worried about their funds in the hands or custody of a third party.  The carelessness and recklessness of most third party exchanges are becoming unbearable and unbelievable to start with. Funds withdrawal is absolutely the best option now as it would not make any sense waking up to hear an unfortunate news in respect to ones investment and funds under the care of a third party exchange gone.

[Frankolala]

Wow,what a huge withdrawal,imagine the number of people  thay keeps their Bitcoin in a centralized system that is not safe,giving these centralized system power over their investment.

 FTX crash happened and this has taught so many bitcoin investors to know the implication of keeping their coins in an exchange. So many persons have understood the advantage of keeping their coins in a noncustodial wallet, I am happy they have learnt from the recent incidents and have started embracing bitcoin decentralized system. P2P will be used more and, the exchange should be used only when trading. Nobody knows which exchange is the next to collapse so this is a smart move that they did in other to avoid regrets.

[Ryker1]

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?

[NeuroticFish]

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

People have a selective way to read the news and this may have been missed by many.

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.

Actually I think that this a result of CZ FUD on Coinbase. He tweeted that Coinbase has issues / insufficient money, then removed that tweet later on, after it made its effects.
You can read on this on all news and also on bitcointalk (for example here).

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.

Panic is never good on the market. Panic can easily take the price lower. And if, by chance, another exchange bites the dust... it will not be pretty.

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

This is a good question. I don't know the answer, but I can guess that Binance, no matter CZ advertisements and CZ throwing stones towards the competition, is also tested by withdrawals. Sadly, I don't know the magnitude of that.

[virasog]

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.

Well at that time there were only investigations on Tether and Tether never collapsed. But this time is different as FTX collapsed and people lost a lot of funds in the exchanges.
So it will take some time while people will regain confidence in this market. However, bitcoin and crypto are not going anywhere. However, I don't see people will regain trust in centralized exchanges and that is overall good for the market. People never listen before but now everyone agrees to keep their funds in their own decentalized wallets.

[Jon_Hodl]

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.

[Oshosondy]

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.

[Jon_Hodl]

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.

Coinbase is a terrible platform. It's rife with shitcoin scams. They are actively working with chain anal companies to destroy bitcoin privacy. There's no way for me to prove it but I think they are one of the largest fractional reserve bitcoin banks in the world and one of the largest reasons why the price is as low as it is. Coinbase is not good for bitcoin.

I don't expect it to be possible. It will never happen. People seem to love third-party custody and losing their money.

Trading should absolutely occur as their needs to be a way to buy bitcoin with fiat currency but there are a multiple other bitcoin only companies that are much better than Coinbase.

[o_e_l_e_o]

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."

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.

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

It means nothing. Every exchange is as risky as every other exchange. The only safe place for your coins is your own wallet.

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

"Blockchain" isn't a single entity. Bitcoin is decentralized. Centralized exchanges are not. Most altcoins are not. If your money is in altcoins or on centralized exchanges, then you are liable for large losses. If your money is in bitcoin and in your own wallet, then you are quite safe.

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

I still find this highly surprising, given that it was 100% proven in court documents and filings that Tether is fractional reserve and do not hold nearly enough assets to cover all outstanding USDT. And yet for some reason they continue to attract new users.

[Lucius]

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.

[Oshosondy]

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.

We can leave without them, those centralized exchanges are not needed before making bitcoin transaction, definitely true. But from the way you post, it is clear that you are not a trader but which is good. If you trade daily, leveraging with opening and closing position daily or weekly, you may slightly depend on an exchange.

Please can you suggest a decentralized solution for we traders as we depend on those exchanges? But only trading funds are there, winnings are withdrawn to a noncustodial wallet.

[o_e_l_e_o]

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

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.

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

Afraid I can't. As you say, I'm not a trader, and my point is that bitcoin was designed to be a currency, not to be a tool used to simply increase the amount of fiat you own. If less people used centralized exchanges for trading and more people simply bought and used bitcoin peer to peer as a currency, we wouldn't be in this mess to begin with. The decentralized exchanges I would recommend, such as Bisq or RoboSats, do not lend themselves to daily trading.