According to data from CyptoQuant and Glassnode, Bitcoin on the Huobi platform began to flow into the Binance exchange “crazy” on November 2. The outflow of Bitcoin from Huobi and the inflow of Bitcoin from Binance both set records this year. In the previous three months, the inflow and outflow trend was opposite. 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.
OK started to stop withdrawing coins on October 16. The media revealed that the founder Xu Mingxing lost contact a week ago and is assisting the Shanxi police investigation. On November 2, Wu said that the blockchain was informed that the COO of Huobi also assisted the Shanxi police in the investigation, but the Huobi platform did not restrict withdrawals, and operations are temporarily normal. Due to the panic in the market, and Binance is the top exchange most familiar to Chinese users except OK Huobi, the inflow of Bitcoin is also normal.
It can be seen from the data that Huobi Bitcoin is pouring into Binance “crazy” for a few days starting from November 2. Coindesk’s calculations show that from November 2 to November 11, a total of 18,652 bitcoins flowed into Binance from Huobi.
Previously, from August to early November, the flow of Bitcoin was the opposite. It has been flowing from Binance to Huobi. The reason may be that more users use OTC to buy bitcoins on Huobi. This flow also shows that Binance and Huobi were at a disadvantage in the competition in the Chinese market until this black swan incident occurred.
According to CyptoQuant data, the flow of Huobi 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 mainstream overseas exchanges such as Coinbase and Bitfinex And the Bitcoin of contract exchanges such as Bybit and BitMEX has not changed significantly, because Huobi users are mainly Chinese users.
According to Glassnode data, after November 2nd, Huobi ushered in the largest Bitcoin outflow of the year, and Binance ushered in the largest Bitcoin inflow of the year. Glassnode shows that Huobi’s highest outflow of bitcoins in a day exceeds 25,000; and Binance’s highest inflow of bitcoins in a day exceeds 12,000.
According to data from Chain.info on November 14th, Huobi still has 141,451 bitcoin reserves, and Binance has multiple cold wallets, 74618, 65236 and 7,794 respectively. According to Chain.info data on October 27, the Huobi Bitcoin cold wallet balance is 20,3502.09. Based on this calculation, Huobi cold wallet has reduced nearly 60,000 Bitcoins. There may be many users who transfer Bitcoins to cold wallets instead of coins. An and other centralized exchanges.
It is normal for big investors to flee to another centralized exchange in the panic. In 2019, Binance was attacked by hackers, and Bitcoin flowed from Binance to Huobi in a panic on May 7. However, due to the small damage and the promise of full compensation, the follow-up quickly returned to normal. Huobi is currently recovering from the panic, but since the Shanxi case is still under investigation, the panic may not disappear completely in the short term.
People in the Binance industry pointed out that under the stricter regulatory environment in China, companies that successfully go overseas are under relatively less pressure and are more likely to succeed, such as Binance, Kucoin, and Bybit. If Huobi OK can succeed this time, it should also speed up the pace of comprehensive overseas expansion, and dilute the local color and user dependence.
