For one of the first times in history, Bitcoin is recording more withdrawals than deposits over all exchanges. This is very good for the long-term.

Lets for one moment stop debating about the short-term price movements we have been experiencing for the past days but instead look at the very long-term picture of Bitcoin. When it comes to exchanges there are two vital things that are being recorded by on-chain metric, withdrawals and deposits. Here we have just recorded for maybe the first time in history that ALL exchanges are having more withdrawals than deposits.

What does this mean? Well, basically that more people are putting their money out of exchanges than in them right now and as this metric is about all exchanges there is also no migration to other exchanges happening as we could have thought. It is usually seen as very bullish to have your money out of exchanges as this means that you can not sell, this is why many deposits are seen as bearish and withdrawals as bullish.

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Chart from James V. Straten by Glassnode

Here we can see that as far as this metric still makes sense (before 2018 not many exchanges existed), we have just reached more “withdrawals than deposits“ for the first time EVER and we can also read out that this has mainly been caused by the FTX implosion as this seems to have caused some trust-issues with all exchanges and rightfully so.

It is very good to see that people are finally taking the phrase “not your keys, not your coins“ seriously. This will also be very bullish for the longterm of Crypto as people wont fall for more scams or at least for fewer scams.