The OKEx coin withdrawal crisis will end, and tens of thousands of bitcoins will be moved between exchanges within a month
In October of 2020, an extraordinary year, for the digital currency industry, it can be described as a day with various feelings and self-knowledge. Defi, which was once extremely popular, ebbed, and a large number of projects plummeted; mainstream currencies represented by Bitcoin and Ethereum However, in the middle and late October, a new wave of market was launched. Judging from the trend in November, this wave of market has even evolved into a new bull market. By mid-November, it was not far from the previous high of 20,000 US dollars.
However, for centralized exchanges, October can be described as a constant story. Taking HBO, which is most familiar to Chinese investors, namely Huobi, Binance, and OKEx, as examples, they have just resisted the erosion of Defi and ushered in a new impact on the industry. . On October 16, OKEx announced the suspension of withdrawals, which shocked the entire industry. Huobi, which is similar to OKEx in terms of policy environment, also came under pressure from public opinion and concerns from users, even in early November. The rumor of the person in charge of the company caused another wave of panic in the industry. As the world's largest centralized exchange, Binance is also considered by some investors to be risky, and market rumors are also disturbing.
It has been more than a month since OKEx suspended withdrawals on October 16, and finally announced yesterday that it will resume withdrawals within the month. It seems that the exchange and its users are coming to an end. So, what have other exchanges experienced this month? Previously, we introduced the impact of Huobi Exchange’s Bitcoin traffic reflected by on-chain data one week after the incident. Today, let’s focus on whether Binance Exchange, which is considered to be more international, is better immune to recent market risks. What about the impact?
Let us pay attention to the bitcoin inflow to Binance three weeks after the OKEx suspension of withdrawals, and compare it with the bitcoin price in the same period. We can see that the overall bitcoin inflow is arranged in a "triangular" cycle. Please note that this is a normal situation in itself. From the daily data, Saturday and Sunday are the data lows of the week, although the digital currency It is 7*24 hours trading, but obviously on the rest day, everyone's trading activity will drop sharply. However, October 17th and October 18th were two days on the weekend. After that, the data showed a normal trend and no major changes. Of course, it may be because OKEx suspended withdrawals, so the funds could not escape temporarily.
After November 2, with rumors related to Huobi executives, the number of bitcoins flowing into Binance began to increase significantly. This shows that for exchanges, users will always "vote with their feet", and the impact of the black swan event in the industry will have a very large impact on its operating data, at least in the short term. Bitcoin prices soared in mid-to-early November, triggering more bitcoins to flow back to Binance. In fact, this trend has been reflected between the end of October and the beginning of November, and the net inflow of BTC to Binance increased by 350% within two weeks. In the last week at the end of October, that is, from October 24 to October 30, Binance’s bitcoin inflow was 78470.5BTC, and in the following week, that is, from October 31 to November 6, Binance’s Bitcoin inflow was 78470.5BTC. Bitcoin inflow reached 133020.48BTC, a weekly increase of 69.52%. During the same period, Binance’s Bitcoin outflow increased by 20.82%. As a result, Binance reversed from a net outflow of 14,000 BTC in the last week of October to a net inflow of 35,000 BTC in the first week of November. Under the influence of the dual factors of the big currency market, Binance, as a centralized top exchange, has obvious advantages.
Looking at the source of Bitcoin inflows to Binance, based on the data for the month from October 15 to November 15, it is obvious that the proportion of Bitcoin inflows from Huobi reached 47.75%. 55819.9 BTC flowed into Binance, what is this concept? Let's compare the data for September.
According to the data of September 2020, Huobi’s inflow of Bitcoin into Binance was 19,074.39 BTC, accounting for 18.13%, which was the largest inflow among the top exchanges. During the same period, OKEx inflows accounted for 13.46%, and Bitmex inflows accounted for 14.52%. Compared with September, the number and proportion of bitcoins from Huobi have increased significantly, reflecting that users seem to be taking action. At the same time, we found that from the perspective of the number of overseas exchanges, the number of Bitcoins from Coinbase in Binance in September was 5071.46BTC, and it was 5154.25BTC in the past month, which has not been affected by recent events in terms of quantity. Impact.
Yesterday, OKEx announced that it will soon open withdrawals, which may be a good news for the entire industry. Of course, for OKEx and Huobi, which are directly in the eye of the storm, whether they can rebuild user confidence is still a challenge. Their data Whether it can recover growth in the future, we need further observation. As for Binance Watch, which has stronger international characteristics, judging from its data, Binance has clearly demonstrated stronger adaptability in this crisis, whether it is from the source of net asset inflow data or during this period. With various “rewarding users” activities and services launched, more assets choose to stay in Binance. From the perspective of domestic users, Binance is the biggest beneficiary, and its overseas capital flow has not been affected.
Next, if the price of Bitcoin continues to rise, the data of centralized exchanges is expected to further increase, and most of the relevant top exchanges will benefit from it. The next big focus is, after the OKEx exchange resumes withdrawing coins, will its users enter the market calmly, or will they withdraw large amounts of coins with lingering fears, and where will these assets flow to? We will pay more attention to the new trends of HBO in the aftermath of this incident.
