Bitcoin Inter-exchange fell to lowest levels since 2017: Report
A recent report showed that Bitcoin inter-exchange has fallen to its lowest levels since 2017, with daily transfers dropping to 2,004 on January 1, 2023.
The downward spiral was linked to market volatility in a report published by BanklessTimes.com.
The report explained that the volatile nature of the cryptocurrency market is making traders hesitant to transfer their assets from one exchange to another for fear of incurring losses.
It further attributed the decline to exorbitant exchange fees and liquidity issues, explaining that traders find it difficult to move their assets due to the high exchange fees frequently charged to transfer cryptocurrencies.
The report also stated that the decline in BTC inter-exchange transfers could be attributed to liquidity issues at some exchanges.
The report mentioned that lack of liquidity might make it challenging for traders to buy and sell cryptocurrencies, which would lead to fewer transfers between exchanges.
Commenting on the report, Jonathan Merry, the CEO of BanklessTimes, explained that many traders are hesitant to move their funds due to uncertainties in the crypto market.
“The drop in BTC transfer is significant as the crypto market has been volatile for some time. Many traders are hesitant to move their funds due to the market swings, and this might be the reason why the inter-exchange transfer has taken a dip,” Mr Merry said.