Bitcoin (BTC) supplies stored on the crypto exchange BitMEX have declined rapidly in the past two weeks, following the massive liquidation on March 13.
Bitcoin supplies in BitMEX in free fall
It is known that crypto exchanges store a large part of the cryptocurrencies in circulation. In fact, for much of 2020 that storage was on the rise until March arrived.
March has been perhaps the most happened and strange month for all humanity. During Black Thursday, on March 12, the price of BTC experienced one of its worst falls in its history.
In this way, the drop in the price of Bitcoin caused a large number of liquidations that have kept the company in tension for two weeks in a row.
The settlements affected all crypto exchanges in the industry. However, BitMEX was certainly one of the hardest hit.
And is that, according to the data collected by CoinMetrics, the supplies of Bitcoin held by the crypto exchange has been in free fall since March 13.
To be more precise, according to CoinMetrics, BitMEX currently owns around 244,000 BTC. Some may think, “That’s a pretty high number!” However, if we compare it with the figures previously reached, the illusion disappears.
The figure has dropped 22.5% from the peak BTC supply levels BitMEX observed on March 13, at which time it had 315,000 BTC.
The reasons behind this event cannot be specified. There are two options that are being handled.
First, it can be explained because investors have simply decided to withdraw their cryptocurrencies in an uncertain market. Or, secondly, it could be the crypto exchange itself, BitMEX, which may have decided to reduce its own exposure to BTC movements.
However, another element of interest is that more Bitcoin has been withdrawn from the crypto exchange than it has entered. And it is that, according to data from TokenAnalyst, a net flow of -67,000 BTC was observed
BitMEX is not the only one
BitMEX is not the only crypto exchange that has seen its BTC supplies drop dramatically. Glassnode has collected some important data showing that withdrawals have increased since March 18.
According to Glassnode, the decrease has been so drastic that it has caused the amount of Bitcoins on exchanges to be at their lowest levels in approximately eight months.
This is likely because investors may have decided to keep their own cryptocurrencies in custody amid growing concerns regarding the liquidity of crypto exchanges.