FTX Exchange’s Bitcoin Balance Goes Negative

The amount of Bitcoin (BTC) held on FTX exchange has gone negative at -197.95 following 20,175 BTC leaving the exchange over the past 24 hrs.

 

Of all exchanges tracked by Coinglass, FTX has the lowest balance at -197.95 BTC.

 

The next lowest is Poloniex at 127.14 BTC, while exchanges such as Coinbase Pro and Binance hold 573,452 BTC and 514,868 BTC, respectively.

 

Over the last 24 hours, 17,579 BTC in total left exchanges. The main outlier is Binance which saw an inflow of 16,792 BTC along with Bitfinex, Gemini, and Huobi which all saw over 3,000 BTC move onto the platforms.

 

The chart below showcases Bitcoin balances across all exchanges and the steep drop on Nov. 7. Previously, in late October, 50,000 BTC moved onto exchanges in a single day followed by a steady inflow of BTC into the start of November.

 

 

CryptoSlate previously reported that nearly 20,000 BTC was moved from FTX to Binance amid the ongoing drama. Glassnode data showed 6,000 BTC held on FTX as of Nov. 6. after weeks of outflows.

 

However, Coinglass data indicates the decline has continued to the point where the balance is now in the negative.

 

A negative BTC balance on FTX may indicate an insolvency issue around Bitcoin holdings on the exchange. Its CEO Sam Bankman-Fried communicated that “FTX is fine.” on Nov. 6 claiming that there is no liquidity crisis. Further, SBF reiterated that withdrawals are still being processed as further evidence that there is no need for investors to worry.

 

According to an FTX status page, Bitcoin withdrawals are still available despite data suggesting the exchange has a negative Bitcoin balance. The page also states that there is a backstop fund of $15 million and 6 million FTT tokens.

 

Trading volume for Bitcoin on FTX over the past 24 hours stands at 181,513 BTC with open interest at 35,799 BTC. Further, the total 24-hour spot trading on FTX was reported as $3.76 billion while a note on FTX’s Global Volume Monitor states that 35.3% of the reported crypto volume across the whole industry is fake.

 

For comparison, FTX reported that Binance’s spot trading volume was $13.45 billion over the same period.

 

Questions may now arise as to whether FTX does indeed have a negative bitcoin balance as suggested and whether this will lead the exchange to sell other assets to buy more bitcoin to cover.

 

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