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<\/p>\nData from leading cryptocurrency markets data provider CryptoCompare has revealed that during its liquidity crisis, popular cryptocurrency trading platform FTX saw outflows of nearly 20,000 BTC.<\/p>\n
According to CrypotCompare\u2019s deep dive into FTX\u2019s insolvency and Binance\u2019s move to sign a letter of intent to acquire the cryptocurrency exchange, FTX saw outflows of 19,947 BTC, worth over $340 million, on November 7, the largest figure since September 10, 2021 when the exchange recorded more than 45,000 BTC outflows.<\/p>\n
Moreover, on November 7 FTX recorded the \u201clargest number of withdrawal transactions in its history,\u201d which suggests users \u201cwere concerned about the current situation\u201d and were potentially allocating their assets to other exchanges.<\/p>\n
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In its report, CryptoCompare noted that over the last few months the volatility of most digital assets kept on declining, which meant the market became more sensitive to macroeconomic data. Per the firm, BNB and SOL hit their lowest 30-day volatility on October 22, at 26.4% and 48.7% respectively.<\/p>\n
Volatility started picking up as more companies announced moves into the cryptocurrency space, with Google, for example, revealed it was running a block-processing Solana validator. The increase in volatility surged when Binance said it was divesting its holdings in FTX\u2019s native FTT token, and quickly picked up from there.<\/p>\n
FTX\u2019s volatility, CryptoCompare added, jumped from 53.3% on November 7th to 492% on November 8th after a 75.2% decline in price on the day to $5.48. The token dropped to a $2.57 low before recovering slightly, in a drop that triggered sell-offs for other digital assets.<\/p>\n
The firm also revealed that FTX\u2019s stablecoin reserves declined 42.6% to $171 million after Binance announced it was offloading its FTT holdings.<\/p>\n
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The report adds that open interest in FTX has since risen 66.2% to $130 million over a rise in short positions that traders are taking following the bank run FTX experienced. To the firm, these developments will \u201clikely be a new addition to the file that keeps a record of all the events in crypto that suggest watchdogs should come down heavily on the industry.<\/p>\n
Circle co-founder Jeremy Allaire likened FTX\u2019s liquidity crisis to the Lehman Brothers\u2019 collapse in 2008. Several cryptocurrency exchanges, including Coinbase and Kraken, have distanced themselves from FTX, clarifying they had no exposure to the exchange.<\/p>\n