OKEx Sees Biggest Bitcoin Outflow in 8 Months After Resuming Withdrawals
Update (11:10 UTC, Nov. 27, 2020): OKEx saw a total outflow of 24,631 bitcoin on Thursday, according to CryptoQuant, the largest amount since the March markets crash.
Cryptocurrency exchange OKEx recorded a major bitcoin outflow just minutes after it lifted a five-week-long withdrawal suspension at 08:00 UTC Thursday.
About 2,822 BTC was moved from OKEx in block number 658,728 mined at 08:12 UTC. That's the biggest single-block outflow since May 2019, according to blockchain analytics firm CryptoQuant.
OKEx bitcoin outflows by block
Of the 2,822 coins withdrawn, 456 were transferred to cryptocurrency exchange Binance and more than 400 were moved to other exchanges. Meanwhile, 54 accounts or addresses took direct custody of some coins.
OKEx halted withdrawals indefinitely on Oct. 16 after one of the exchange’s key holders went "out of touch” with the exchange because they were held by authorities to "assist an investigation."
Some analysts have associated bitcoin's recent meteoric rise to 35-month highs above $19,000 with a supply shortage due in part to OKEx's suspension of crypto withdrawals. That's because the price rally began after OKEx's decision, dated Oct. 16.
However, many market observers do not see a strong reason to link the latest price rally with OKEx’s issues. "The 'perfect' timing of OKEx’s suspension and the price rally could be purely coincidental," Ryan Watkins, bitcoin analyst at Messari, told CoinDesk.
Bitcoin plunged nearly $3,000 on Thursday, shortly before OKEx was due to restart withdrawals. It's also not clear if the two events may be linked.
DISCLOSURE
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
