Monday saw 123,000 bitcoin withdrawn from exchanges - the highest number since March 2020. However, it’s important to remember that this metric can be a bit unreliable as some new exchange addresses can go undetected by the data providers for a while, and later show to be internal movements and not real outflows.

Monday saw 123,000 bitcoin withdrawn from exchanges - the highest number since March 2020. However, it’s important to remember that this metric can be a bit unreliable as some new exchange addresses can go undetected by the data providers for a while, and later show to be internal movements and not real outflows.

Usually, such large outflows result from corresponding inflows during the previous days. We haven’t seen such large inflows lately, indicating that the outflows could be caused by increased perceived counterparty risk spurred by the Celsius situation. It didn't help that Binance suspended withdrawals shortly after Celsius, apparently due to technical issues. Luckily for depositors, Binance resumed withdrawals after a few hours.

These episodes should have reminded hodlers that cold storage is always the safest.