Investors have been withdrawing Bitcoin ($BTC) from cryptocurrency exchanges at the “most aggressive pace in history,” as overall exchange outflows in June reached at almost $3 billion, or 151,000 BTC.
According to statistics from on-chain analytics company Glassnode, the greatest exchange outflows ever were observed last month, with so-called shrimp and whale wallets being the primary recipients of these outflows on the blockchain of the cryptocurrency.
In the second quarter of this year, Bitcoin dropped over 58 percent of its value, falling from $45,524 to just under $19,000. This is the worst quarterly performance Bitcoin has had in more than a decade.
Bitcoin has had its worst quarterly performance since the third quarter of 2011 when it lost 68.1% of its value. In June of 2011, its main exchange, Mt. Gox, had its first breach, causing the price of the cryptocurrency to plummet at the moment. At the time, BTC plummeted to $0.01 in an instant.
The decline in cryptocurrency prices showed that a number of enterprises in the industry were extremely indebted. In May, the algorithmic stablecoin TerraUSD ($UST) and its companion token LUNA failed, wiping out billions of dollars from the market.
In June, the troubled crypto lending company Celsius Network banned client withdrawals due to “extreme market circumstances,” followed soon afterwards by competitor lenders Babel Finance and CoinFLEX. Following these were Vauld and Voyager Digital.
In addition, the crypto hedge fund Three Arrows Capital has been forced into liquidation by a court order issued in the British Virgin Islands after creditors sued the firm for failure to repay obligations.
The restriction of withdrawals by exchanges undoubtedly informed most cryptocurrency investors that their funds are safer in wallets they control, resulting in outflows from exchanges. Notably, the quantity of BTC held on exchanges has decreased from 3.15 million to 2.4 million since March 2020.
As reported by CryptoGlobe, the number of active cryptocurrency users at Bank of America has decreased by more than 50 percent since the apex of the cryptocurrency bull market, as cryptocurrency values plummet and Bitcoin has its worst quarter in more than a decade.
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