Key Insights:
- Binance leads exchange withdrawals with $21.75B outflow in seven days.
- Analysts expect higher market volatility as traders shift funds from exchanges.
Binance Leads in Weekly Outflows Amid Investor Caution
Centralized exchanges experienced significant asset withdrawals over the past week, with Binance recording the largest outflow, according to data from CoinGlass. Around $21.75 billion left Binance in seven days, while 24-hour withdrawals stood at $4.1 billion. Analysts noted that this trend shows sustained investor caution amid tight market liquidity.
Large fund movements from exchanges often suggest traders are transferring assets to private wallets. Investors are exercising caution by holding their assets off-exchange. The activity comes as Bitcoin and other cryptocurrencies trade within narrow ranges, with market participants showing limited short-term confidence.
Broader Exchange Withdrawals Indicate Risk-Off Sentiment
Bitfinex recorded the second-largest seven-day outflow, totaling $10.79 billion, along with a $390.15 million 24-hour withdrawal. OKX and Gate.io also saw outflows of $10.64 billion and $9.78 billion, respectively. Analysts said these withdrawals may reflect a broader risk-off sentiment as traders respond to regulatory uncertainty and lower spot trading activity.
Some smaller exchanges, including Bitunix, reported modest inflows during the same period. Analysts viewed this as evidence that a few investors remain confident in selected platforms. The movement exhibits mixed behavior among traders, but the overall trend of outflow persists.
Market experts cautioned that if these withdrawals persist, centralized exchanges could face temporary liquidity pressure. They added that sustained outflows may lead to increased volatility as capital shifts toward decentralized alternatives or off-exchange holdings.
