Exchange outflows hit historic highs as Bitcoin investors self-custody

Bitcoin (BTC) investors person been progressively moving their holdings to self-custody solutions pursuing the illness of the world’s second-largest crypto speech past week.

On-chain speech travel information is showing a surge successful withdrawals to self-custody wallets, according to analytics supplier Glassnode.

In a Nov. 13 station connected Twitter, Glassnode reported that Bitcoin speech outflows had deed adjacent historical levels of 106,000 BTC per month.

It added that this has happened lone 3 different times — successful April 2022 and November 2020, arsenic good arsenic successful June/July 2022. It also reported that the fig of Bitcoin wallets receiving the plus from speech addresses surged to astir 90,000 connected Nov. 9.

— glassnode (@glassnode) November 13, 2022

Exchange outflows are usually a bullish motion that BTC is being hodled for the agelong term. However, successful this scenario, it appears to beryllium the effect of loundering assurance successful centralized crypto exchanges.

Glassnode commented that outflows person resulted successful “positive equilibrium changes crossed each wallet cohorts, from shrimp to whales,” earlier adding:

“The nonaccomplishment of FTX has created a precise chiseled alteration successful #Bitcoin holder behaviour crossed each cohorts.”

Since Nov. 6, erstwhile the FTX fiasco began, equilibrium changes person accrued crossed each BTC wallet sizes with “shrimps” that person little than 1 coin expanding by 33,700 BTC. Whale wallets with much than 1,000 coins person seen an summation of 3,600 BTC indicating that the self-custodian propulsion is happening crossed the board.

Industry leaders are present starting to advocator self-custody solutions arsenic the operation “not your keys, not your coins” bears much value than ever before.

On Nov. 13, Ethereum pedagogue Anthony Sassano said that crypto holders shouldn’t beryllium storing their assets connected centralized exchanges unless their actively trading ample amounts.

MicroStrategy’s Michael Saylor told Cointelegraph successful an interrogation that self-custody prevents centralized 3rd parties from abusing their power.

Related: $740M successful Bitcoin exits exchanges, the biggest outflow since June's BTC terms crash

Glassnode besides reported that stablecoins, galore of which destabilized past week, person been flowing onto exchanges astatine accrued rates implicit the past week.

Nov. 10 saw much than $1 cardinal successful stablecoins arriving connected centralized exchanges. The full stablecoin reserve crossed each exchanges it tracks reached a caller all-time precocious of $41.2 billion, it added.

“The echos of the FTX illness volition apt enactment to reshape the manufacture crossed galore sectors, and displacement the dominance, and penchant for trustless vs centrally issued assets,” it concluded.