One in Six BTC on Centralized Exchanges Despite FTX Collapse

Despite the fallout from the FTX collapse, one in six Bitcoin remains on centralized exchanges, revealing insights into investor trust and market behavior.

Did you know that despite the catastrophic fallout from the FTX collapse, one in six Bitcoin is still sitting on centralized exchanges? This shocking statistic raises serious questions about investor trust and market dynamics in 2026. Are traders feeling secure enough to keep their assets on exchanges, or are they just waiting for the right moment to dive back into the market? Why Are So Many Bitcoin on Centralized Exchanges? According to a recent report from CryptoPotato, approximately **16.7%** of all Bitcoin in circulation is currently held on centralized exchanges. This figure reflects a stark recovery from the immediate aftermath of FTX's collapse in late 2022, when investor confidence had plummeted. The resurgence of Bitcoin on platforms like Binance , which alone handles over **45%** of these trades, suggests that traders may be leaning towards simplicity and liquidity. "While many expected a mass exodus from exchanges post-FTX, the data indicates that traders are still finding value in centralized platforms," states Marcus Wei, a well-respected on-chain analyst from CryptoQuant. What Does This Say About Investor Sentiment? Given the weight of FTX's failure, you might expect the opposite trend. But the numbers tell a different story. A staggering **58%** of surveyed traders on Binance reported that they feel comfortable using exchanges, indicating a recovery of trust in the industry. This psychological shift may stem from tighter regulations and the introduction of new safety protocols following FTX. Traders seem to be drawn to exchanges that offer competitive rates and consistent performance. As a result, platforms like ** Bybit , Bitget , and OKX ** are now experiencing increased activity, pushing trading volumes higher. Could This Trigger a Supply Shock? With so many Bitcoin still held in exchanges, could we be on the brink of a supply shock? Historical data indicates that a mass withdrawal of Bitcoin from exchanges often leads to price surges. In 2023, fo