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<p class="is-style-lead">A recent report by on-chain data analysis platform, Santiment, shows that the two most valuable cryptocurrencies by market cap, bitcoin (BTC) and ethereum (ETH), are actively being pulled from cryptocurrency exchanges like Binance.</p>



<p>According to <a href="https://t.co/N1Icon7U19" target="_blank">Santiment</a>, crypto holders are moving their assets from custodial centralized exchanges to cold storage wallets where they have control of the coins&#8217; private keys. </p>



<p>Private keys are important seed phrases for signing transactions, sufficient proof that the sender owns coins.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">📉👌 <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#Bitcoin</a> &amp; <a href="https://twitter.com/hashtag/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#Ethereum</a> both continue to quietly see more and more of their existing supplies move into self custody. Though not a perfect indicator, declining coins on exchanges generally hint at future bull runs, given enough time playing out. <a href="https://t.co/N1Icon7U19" target="_blank">https://t.co/N1Icon7U19</a> <a href="https://t.co/f5YXzqmZNf" target="_blank">pic.twitter.com/f5YXzqmZNf</a></p>&mdash; Santiment (@santimentfeed) <a href="https://twitter.com/santimentfeed/status/1659830319724519425?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">May 20, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<p>On-chain data shows that the supply of these two major cryptocurrencies on leading crypto trading platforms has been decreasing and shifting to self-custody.</p>



<p>Specifically, the amount of bitcoin on crypto exchanges stands at 5.84%, the lowest level since December 2017. Meanwhile, ethereum on exchanges is at 10.1%, a 8-year low and a level last recorded during the mining of the Ethereum genesis block in July 2015.</p>



<p>In hard numbers, only 1.1m of the 18.3m BTC in circulation are held in exchanges. Similarly, only 12.1m ETH are on centralized crypto trading platforms.</p>



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<h2 class="wp-block-heading" id="strong-run-on-exchanges-may-be-precursor-to-bull-market-strong"><strong>Run on exchanges may be precursor to bull market</strong></h2>



<p>Santiment also noted that while coin outflow from centralized ramps is not a perfect indicator, it does point to potential <a href="https://crypto.news/bitcoin-might-be-on-the-verge-of-bull-run-data-suggests/">bull runs</a>. </p>



<p>Even so, bulls need to hold on until the two digital assets play out over time.</p>



<p>Furthermore, it may illustrate a growing need for investors to have complete control over their crypto holdings and provide assurance that they are secure, given the distrust for exchanges caused by the <a href="https://www.wsj.com/articles/sam-bankman-fried-ftx-alameda-bankruptcy-collapse-11668824201" target="_blank" rel="noopener">collapse</a> of FTX last year.</p>



<p>In March, withdrawals from Binance,the world&#8217;s leading cryptocurrency exchange, skyrocketed following a recent spat between the crypto exchange and the United States Commodity Futures Trading Commission (CFTC).</p>



<p>Since September 2022, crypto investors have been moving coins in droves to self-custody addresses. The process was accelerated in November 2022 following the disastrous collapse of FTX. The failure of the now-defunct exchange eroded user trust in centralized platforms.</p>



<p>Presently, some investors appear to be hurrying to transfer their holdings from Binance to cold wallets after the CFTC threatened to <a href="https://crypto.news/us-cftc-sues-binance-crypto-markets-contract-ex-ftx-boss-faces-fresh-allegations-weekly-recap/">sue</a> the exchange for allegedly breaking local trading laws.</p>



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<iframe title="CFTC Sues Binance: What This Means For The World&#039;s Largest Crypto Exchange" width="1020" height="574" src="https://www.youtube.com/embed/LFUxIekGZco?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
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<p>According to media reports, Binance clients pulled out <a href="https://markets.businessinsider.com/news/currencies/binance-depositors-flee-following-cftc-charges-on-chain-data-shows-1032195089" target="_blank" rel="noopener">$400m</a> in the 24 hours following the CFTC’s statement.</p>



<p>Parallel data further revealed that Binance users withdrew about $850m from the platform in the 12 hours preceding the CFTC issue.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">1/ Large on-chain movements prior to the Binance indictment <br><br>A few hours before the Binance CFTC Indictment, there were large stablecoin withdrawals across centralized exchanges, totaling almost $1.5B in just 12 hours<br><br>Notably, Binance itself saw an $850M outflow. <a href="https://t.co/yLD7f1cgmB" target="_blank">pic.twitter.com/yLD7f1cgmB</a></p>&mdash; An Ape&#39;s Prologue (@apes_prologue) <a href="https://twitter.com/apes_prologue/status/1640434649267576853?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">March 27, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<p>Earlier, Binance had to deal with significant withdrawal requests in Q4 2022. This is after federal prosecutors in the United States said they could launch money laundering charges against the ramp.</p>



<p>Despite fears, the exchange didn&#8217;t fail on their withdrawal obligations and completed all transactions without incident. </p>



<p>CEO Changpeng Zhao, better known as CZ, dismissed assuaged user fears that all claims were a plot to create fear, uncertainty, and doubt (<a href="https://crypto.news/bitcoin-adoption-up-despite-binance-fud/">FUD</a>) in the market.</p>



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Bitcoin, ethereum on centralized exchanges at multi-year lows

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