November saw the largest exodus of bitcoins from exchanges in history.
Since November 7, when rumors of FTX's insolvency gained traction, cryptocurrency exchanges have said goodbye to around 200.000 bitcoins, valued at the time of writing at more than $3.360 billion.
Bitcoin investors have been moving their assets from cryptocurrency exchanges into self-custody wallets, in a move that cryptocurrency analyst and Reflexivity Research co-founder Will Clemente has called “the great exodus.”
On his Twitter account, Clemente shared data from the blockchain analysis platform, Glassnode, which shows that around 200.000 bitcoins have left exchanges in the last 30 days.
Rumors of the failed exchange FTX's insolvency began to spread in early November, after a report from its investment arm Alameda Research was leaked. The situation alerted many investors, although bitcoin withdrawals from the exchanges intensified a few days later, after FTX's liquidity crisis was confirmed and the company decided to suspend its clients' withdrawals.
Others data Data consulted on the Coinglass platform show that the cryptocurrency exchange that has been most affected by the mass exodus of bitcoins in the last 30 days has been Coinbase, registering an outflow of 128.500 bitcoins in November.
Bitcoin mining profitability
The collapse of FTX has affected the price of Bitcoin, driving the cryptocurrency's downward trend in the market. According to CoinMarketCap, in the last 30 days the price of Bitcoin has lost about 18% of its value, currently trading at around $16.800 per unit.
The bearish trend has also affected the profitability of Bitcoin miners, many of whom have been forced to disconnect from the network. The exit of miners has decreased the difficulty of Bitcoin mining from its all-time high of 39,9 trillion to 34,2 trillion, currently.
According to Clemente, while this has been the largest downward difficulty adjustment for Bitcoin since China's mining ban, the silver lining is that the difficulty drop is marginally easing the pressure on Bitcoin miners who remain connected to the blockchain network.
Bitcoin's hash rate, the computational power of the blockchain network, is over 288,90 exahashes per second (EH/s), at the time of writing this article.
On the other hand, the price drop in Bitcoin has benefited small investors of this cryptocurrency. As reported by this media at the beginning of the month, investors with less than 1 bitcoin (<1 BTC) have accumulated more than 1,21 million bitcoins, which represent about 6,3% of the circulating supply of BTC in the market today.
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