Bitcoin Records Largest Monthly Withdrawals Ever In June

June 2022 experienced the biggest monthly outflow of Bitcoin (CRYPTO: BTC) from centralized wallets in history.

What Happened: Last month, there was an outflux of 151,000 Bitcoin from centralized exchanges. According to Glassnode, the outflow is computed via “exchange net position change.” This indicator calculates a netted amount of Bitcoin that flows in and out of centralized wallets. In other words, it is determined by subtracting all outflows from inflows.

A negative “exchange net position change” represents higher outflows and a positive value indicates higher inflows. Thus, Glassnode’s report indicated the largest negative value seen in Bitcoin history.

Why It’s Important: The cryptocurrency market has been in an extremely bearish downtrend over the past few months. Last month saw a large crash in the cryptocurrency sector, causing over $2 trillion in capital to be wiped out of the sector.

The large-scale outflows from centralized exchanges could be indicative of falling investor confidence in exchanges. Given major liquidity crises experienced by crypto firms causing withdrawals to be frozen, investors may be transitioning to cold wallets, away from centralized wallets.

Despite the market continuing to be bearish, investors may be more confident in their Bitcoin investment, looking to HODL in cold wallets. As bearish and turbulent market conditions continue, investors may be adopting a longer timeframe mindset on their Bitcoin investment.