The sudden fall and collapse of one of the largest crypto exchanges globally, FTX, has continued to exert a negative effect on the crypto markets. The current liquidity and bearish appearance of the market have also continued to create fear in traders, investors, and sellers.
Although, the dumping and sale of holding have been ongoing for the past week due to market bears and dip. However, the situation escalated when FTX suspended withdrawals, giving hints of bankruptcy.
Investor, Holders Moves 80k BTC Out From Exchange Wallet
Triggered by the collapse of the FTX platform, traders, investors, and holders have been transferring their portfolios out of CEX en masse. Fear, uncertainty, and doubt are presently high in the market, which may persist for a long time.
According to a famous On-Chain firm, CryptoQuant, there had been a massive withdrawal of tokens and coins, especially BTC and USDTs. All centralized exchanges, including Binance and FTX, have experienced the surge.
A CryptoQuant worker with the username JA_Maartun alleged that holders transferred approximately 80 000 BTC from different exchanges wallets in the last 24 hours. Holders, traders, and buyers are moving their coins and tokens to other secure places.
Excerpt from his Tweet “Over 80k Bitcoin was transferred out of different centralized exchanges in the past hours. Traders, buyers, and holders are transferring and withdrawing their Bitcoin to store them in alternate places”.
Martin further stressed that the crypto communities had lost their trust and faith in companies and exchanges. The situation of the crypto markets in the past few days caused a loss of confidence.
FTX Suspends Ban On Withdrawals
Few days after placing a ban on withdrawals of customers’ funds, FTX lifted the ban a few hours ago. The cryptocurrency exchange is on the brink of collapsing into thin air after being affected by market liquidity.
The FTX crisis has continued to create fears and questions regarding the safety of exchange wallets. Coupled with the current liquidity in the market, investors are withdrawing their BTC from CEX wallets to other secure options they could get.
Customers and FTX users are being advised to move and withdraw their funds from the exchange immediately. The next move or option for the exchange is unknown, as the acquisition deal with Binance was canceled.
FTX native token, FTT, has also declined by over 60% in the past few days. According to CoinMarketCap, FTT is currently trading at $3.55, a 50% increase after dropping below $2.5.