US Crypto Exchanges Lead to Bitcoin Exodus: Over $1.5 Billion in BTC Withdrawn in One Week

Cold feet are in charge as exchange users continue to move Bitcoin from exchanges to non-custodial wallets.

Bitcoin (BTC) has been inundated with exchanges over the past week as users wary of security and regulatory scrutiny.

Data from on-chain monitoring resource Coinglass shows that exchanges in the US, in particular, are seeing steep reductions in BTC balance.

In the wake of the FTX scandal, efforts to draw attention to the risk of custodial BTC storage have intensified on social media.

Users appeared to heed the warning, withdrawing more than $3 billion worth of cryptocurrency in the week immediately following the credit debacle and ordering a record number of hardware wallets.

The fallout from FTX is just beginning, and as regulators plan investigative actions and greater scrutiny of crypto as a whole, investor angst continues to grow.

The data shows that the trend is still in effect when it comes to exchange withdrawals. Over the past seven days, virtually all major platforms have seen net withdrawals exceed deposits.

The largest weekly reduction comes from Gemini, down nearly 30,000 BTC, followed closely by Kraken, Binance, and Coinbase.

Unsurprisingly, US exchanges have seen particularly large pullbacks, with the jurisdiction set to play a key role in the FTX saga going forward.

This week, lawmakers