This is a direct consequence of the collapse of the FTX empire. To safeguard their interests, many investors take their assets out of the platforms and store them in wallets whose private keys they control.
More than 100,000 BTC withdrawn per month!
More than 100,000 BTC withdrawn per month!
More than 100,000 BTC withdrawn per month!
Recent data from Glassnode highlights the increase in the volume of assets withdrawn from platforms for so-called "self-custody" crypto wallets. In a message published yesterday, the platform specializing in data publishing indicated that Bitcoin withdrawals reached 106,000 tokens per month.
A very high level, noted only on rare occasions. This was already the case in April 2022, but also in November 2020 and to a lesser extent this summer.
The platform also highlights the fact that it was on the day of November 9 that withdrawals were the most important.
In detail, Glassnode notes that the trend is observed among all types of investors. For those who hold less than 1 BTC as for those who are classified among the category of whales.
The platform also notes that the trend has also been observed on stablecoins. And that it too has been accentuated since the FTX crash.
Good to know: A self-custody wallet refers to a wallet whose private key you control. It can be a physical wallet like the Ledger Nano S.
Should we see a return of the uptrend?
Typically, removing digital assets from platforms acts as a bullish parameter. Indeed, in such a case, the selling pressure decreases. This tends to push the price of the asset up since there are fewer sellers. But in this case, it would seem that it looks more like a crisis of confidence.
Recall that before the announcement of its bankruptcy, the FTX exchange was considered the second exchange in the world behind the Binance platform. Its collapse is therefore particularly impactful for the entire market.
Are we heading towards an era of self-custody?
The famous adage "Not your keys, not your coins" has never been as full of meaning as it is today. And many voices are already echoing the portfolios. As early as November 13, in the middle of the FTX affair, Anthony Sassano, Ethereum educator gave his opinion on the issue.
By arguing that he considered that holders of digital assets should not keep their assets on centralized exchanges. According to Michael Saylor, self-custody wallets act as a counter-power to centralized players like Binance or Coinbase.
Even CZ, the CEO of the Binance platform agreed. If he knows that he is walking on eggshells on this subject, the businessman was keen to recall that the possibility of owning his assets was a fundamental right:
"Self-detention is a fundamental human right.
You are free to do so at any time.
Just make sure you do it right.
We recommend starting with small amounts to learn the technology and tools.
Mistakes can be very costly."
The report published by Glassnode also questions the sustainability of this observation. On this point, the report estimates that the collapse of FTX will have consequences for many parts of the crypto economy. And especially on storage methods. Capital flight for self-custodial wallets may therefore only be in its infancy.
READ MORE: 8 Indicators That Precede A Bitcoin Low
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