Post
Topic
Board Bitcoin Discussion
Re: Bitcoin Balances on Exchanges - Sudden rise in the balance of Binance
by
franky1
on 19/11/2022, 02:54:38 UTC
But there are still outflows and inflows that we really don't know what's going on behind the scene, and everyone is upbeat because of what had happened to FTX. And I guess this is going to continue, until everything settles down.

just like traditional banks. people dont deposit all their funds. do a action and withdraw all their funds same day

banks know people get paid a large lump at start of month slowly deplete it over the 30days until their next month

coin custodians/exchanges know people deposit. they trade for a few weeks/months then withdraw

banks/custodians know that people only move about 1-5% of the reserves at any given time/day so the outflows and inflows are a small accounting error on any given day of a small %

.. many other exchanges sweep those inflows to cold store often. where as binance waits weeks/months before sweeping. but suddenly this month binance sweeped all deposits in one swoop in a day to cold store that left the network congested with pending tx to confirm