Cryptocurrencies
Bitcoin Rally Is Masking Capital Flight From Crypto Exchanges
- Investors seen flocking to Bitcoin as Tether concern lingers
- More than $1.7 billlion pulled from Bitfinex, analyst says
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Lost among the current bout of cryptocurrency euphoria is the fact that capital outflows are exceeding inflows on some of the biggest digital-asset exchanges.
While that may sound counter intuitive to the basic laws of supply and demand with prices of Bitcoin and other tokens surging, it’s not that rare an occurrence in a market that has been dogged by allegations of fraud and manipulation over its decade long existence. TokenAnalyst, a London-based provider of blockchain data, estimates that withdrawals from trading platforms including Bitfinex, BitMEX, Binance and Kraken have exceeded inflows by about $622 million over the past 5 days.