Affected by the panic, Huobi and Bitcoin "swarmed" into Binance, and the two parties set a record for outflows and inflows throughout the year
Wu said that the blockchain has learned that according to data from CyptoQuant and Glassnode, Bitcoin on the Huobi platform began to flow into the Binance exchange "crazily" on November 2. Huobi’s Bitcoin outflow and Binance’s Bitcoin inflow both set records this year. In the previous three months, the outflow and inflow trend was opposite, and Bitcoin has been flowing into Huobi from Binance. Panic is the main factor. When Binance was hacked in May 2019, Bitcoin also fled from Binance to Huobi.
On October 16, OK began to stop withdrawing coins. The media revealed that the founder Xu Mingxing lost contact a week ago and was assisting the Shanxi police in the investigation. On November 2, Wu Shuo Blockchain learned that the COO of Huobi also assisted the Shanxi police in the investigation, but the Huobi platform did not restrict the withdrawal of coins, and the operation was temporarily normal. Due to the panic in the market and the fact that Binance is the most familiar head exchange for Chinese users except OK Huobi, the inflow of Bitcoin is also normal.
In the chart, the blue line is the bitcoin flowing from Binance to Huobi, and the orange line is the bitcoin flowing from Huobi to Binance. It can be seen from the data that for a few days starting from November 2, Huobi Bitcoin is "crazily" pouring into Binance. Coindesk’s calculations show that from November 2 to November 11, a total of 18,652 bitcoins flowed from Huobi to Binance.
Looking at the chart, from August to early November, the flow of Bitcoin was the opposite, and it has been flowing from Binance to Huobi. The reason may be that more users use OTC to buy Bitcoin on Huobi. This flow also shows that Binance and Huobi are at a disadvantage in the competition in the Chinese market until this black swan incident occurs.
According to CyptoQuant data, Huobi’s bitcoin flows to Kucoin, Gate and other medium-sized exchanges with certain Chinese users also peaked on November 2, but the total amount is relatively small; Huobi flows to overseas mainstream exchanges such as Coinbase and Bitfinex And the bitcoins of Bybit, BitMEX and other contract exchanges have not changed significantly, because Huobi users are mainly Chinese users.
According to Glassnode data, after November 2, Huobi ushered in the largest bitcoin outflow of the year, while Binance ushered in the largest bitcoin inflow of the year. Glassnode shows that Huobi’s daily maximum outflow of bitcoin exceeds 25,000; while Binance’s maximum daily inflow of bitcoin exceeds 12,000. (Red is Binance Bitcoin flow, green is Huobi)
According to data from Chain.info on November 14, Huobi currently has 141,451 bitcoin reserves, and Binance has multiple cold wallets, 74,618, 65,236, and 7,794 respectively. According to Chain.info data on October 27, the balance of Huobi’s Bitcoin cold wallet was 203,502.09. According to this calculation, the Huobi cold wallet has reduced by nearly 60,000 bitcoins. Many users may have transferred bitcoins to cold wallets instead of coins. An and other centralized exchanges.
It is normal for large investors to flee to another leading centralized exchange due to panic. In 2019, Binance was hacked, and on May 7, under the panic, Bitcoin flowed into Huobi from Binance. However, due to the small damage and the promise of full compensation, the follow-up quickly returned to normal. Huobi is also currently recovering from panic, but since the Shanxi case is still under investigation, the panic may not completely disappear in the short term. (The blue line is Bitcoin flowing into Huobi from Binance)
Industry insiders pointed out that under the environment of stricter regulation in China, the pressure on companies to succeed overseas is relatively less, and they are more likely to succeed, such as Binance, KuCoin, Bybit, etc. If Huobi OK can successfully survive this time, it should also speed up the pace of comprehensive overseas expansion, dilute the local color and user dependence.
Thanks to Hope Cooper for assisting the author in retrieving data; the header picture is from the Block; background information can refer to the old article:Multiple sources confirm that Huobi COO is under investigation and operation and withdrawals are temporarily normal
