Bear Market Boosts Bitcoin Accumulation
In the wild world of cryptocurrencies, the bear market has sparked a movement among everyday investors to scoop up Bitcoin like it’s the last slice of pizza at a party. Recent stats show a surge in wallets holding at least 1 BTC, and those with 10 BTC or fewer are also joining the fun. What does this mean? Well, let’s just say the little guys are gathering their Bitcoin hoards.
Key Custody: Who’s Holding the Keys?
The big question that looms like a cloud over a sunny day is: are these new “wholecoiners” taking the leap into the world of self-custody? Following some nail-biting insolvencies among centralized exchanges, it seems like a lot of Bitcoin enthusiasts are saying goodbye to the cozy comforts of CEX. Checkmate, a lead analyst at Glassnode, stated, “Overall, it looks like at least a short-term movement towards self-custody.” In simple terms, people are prioritizing holding onto their own keys rather than trusting exchanges that might just pull the rug out from underneath them.
Record Withdrawals from Exchanges
Hold onto your wallets! We’re witnessing some jaw-dropping numbers, with exchange withdrawals hitting historic highs. Checkmate revealed, “Last few weeks saw the largest monthly decline in exchange balances, peaking at 177.9K BTC per month in withdrawal volume.” With this mass exodus, the percentage of Bitcoin available on exchanges has dipped to its lowest since December 2017. That’s right, every coin that entered in the past 12 months has flowed right back out!
The New Wave of Wallets
As investors rush to withdraw their Bitcoin, they’re faced with a choice: hot or cold wallets. Here’s how it all shakes out:
- Cold Wallets: These are like the safe deposit boxes of Bitcoin. Think of hardware wallets like Ledger, Trezor, and ColdCard. They’re super secure!
- Hot Wallets: These are more like your everyday wallet—easy to access but not necessarily as secure. Examples include Blue Wallet or Exodus Wallet.
Josef Tětek from Trezor reported soaring sales, saying, “We’ve seen a dramatic rise in interest… sales are hitting historic highs.” It appears that the bears of the market have turned into savvy self-custody enthusiasts.
The Future of Bitcoin Custody
Companies like Relai and ShiftCrypto are breathing in confidence as more users jump into the self-custody game. Imo Bábics from Relai noted an increase in new users and transactions, crediting the FTX crash for sparking renewed interest during an otherwise bleak bear market. With every withdrawal, more individuals are standing up, dusting off their wallets, and declaring, “Not my keys, not my Bitcoin!”
