450,000 Bitcoin (BTC) held on an exchange or in a hot wallet before 2022 have been transferred to cold storage over the course of the year, according to Glassnode data examined by CryptoSlate.
According to Cryptoslate, Black swan events have occurred on the market frequently over the past 12 months, and as a result, exchange reserves for about 550,000 BTC have been depleted. These reserves lost significant amounts of their size on several occasions. For instance, in December, Binance lost 90,000 BTC in seven days, FTX lost 70,000 BTC in two weeks, and in November, Coinbase lost 200,000 BTC in four days.
Cryptoslate further noted that the exchanges had just under $2.8 million in BTC at the beginning of the year and ended up with about $2.25 million, a decline of about 20%. Less than 12% of the total Bitcoin supply is represented by the exchanges’ current BTC reserves.
It can be said that the remaining 450,000 BTC were transferred from exchanges or hot wallets to cold storage in 2021 and the years before, as only 550,000 BTC actually left the exchanges throughout 2022.
(With insights from Cryptoslate)