Bitcoin investors have reportedly amplified moving their holdings to self-custody solutions post the collapse of the world’s second-largest cryptocurrency exchange in the previous week, as reported by Cointelegraph.
According to Cointelegraph, on-chain exchange flow data has shown an increase in withdrawals to self-custody wallets, insights from analytics provider Glassnode showed. Through a November 13, 2022, post on Twitter, Glassnode reported Bitcoin exchange outflows had reached historic levels of 106,000 BTC per month. The platform made the addition that the event happened around three times – April, 2022, November, 2022, and in June/July, 2022. The reporting was also done that the number of Bitcoin wallets receiving the asset from exchange addresses increased to approximately 90,000 on November 9, 2022.
On the basis of information by Cointelegraph, exchange outflows are considered to be bullish in terms of Bitcoin being hodled for the long term. However, in this context, the reason appears to be the result of confidence in centralised cryptocurrency exchanges.
“The failure of FTX has created a very distinct change in #Bitcoin holder behavior across all cohorts,” Glassnode stated.
Moreover, Cointelegraph noted that since November 6, 2022, balance changes have increased across all BTC wallet sizes with “shrimps” that have less than one coin increasing by 33,700 BTC. It is believed that whale wallets with over 1,000 coins witnessed an increase of 3,600 BTC indicating that the self-custodian effect is taking place across the board. Glassnode also highlighted that stablecoins have been flown onto exchanges with regard to increase rates in the previous week.
“The total stablecoin reserve across all exchanges it tracks reached a new all-time high of $41.2 billion. The echos of the FTX collapse will likely act to reshape the industry across many sectors, and shift the dominance, and preference for trustless vs centrally issued assets,” Glassnode concluded.
(With insights from Cointelegraph)
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