Binance saw most of the "dumb Bitcoin (CRYPTO: BTC) inflow" when it was first established in 2017.
A dumb money investor is an individual who makes poor investment decisions due to market hype or the fear of missing out. These investors usually purchase when the price is either at its peak or close to it.
What Happened: According to research by Cryptoslate, the pattern of Bitcoin withdrawals on centralized exchanges has changed significantly over the last five years.
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In 2019, dumb money investors moved away from Binance as newer exchanges like FTX (CRYPTO: FTT) and Gemini emerged. Average withdrawal prices on these exchanges have been very high since they opened.
The average withdrawal price on Gemini and FTX peaked during the Terra LUNA market implosion. Also, a huge chunk of retail traders withdrew their assets from the bankrupt exchange following FTX's recent collapse.
The withdrawals on Bitfinex have remained low and stable since 2017, suggesting that the exchange has a more sophisticated user base, as per the report.
Price Action: At the time of writing, BTC was trading at $16,479, up 1.78% in the last 24 hours, according to Benzinga Pro.