In recent times, investors have begun moving their BTC and other digital assets from exchanges to self-custody. Report shows that the amount of BTC held off-exchange as of today is the highest recorded in years. This decision by investors signifies two things.
The first significance is that investors are still confident in BTC; that's why they are moving away from exchanges but not selling. The second significance is that these investors are losing confidence in crypto exchanges.
Significantly, the highest withdrawal from exchanges is on Gemini. Shortly after the FTX collapse, users transferred about 30,000 BTC from the Gemini exchange to self-custody. Other exchanges that recorded Bitcoin exodus include Kraken, Binance, and Coinbase.
Furthermore, Binance exchange has recorded a mass exodus of crypto tokens. It reported that on the 13th of December, users moved more than $5 billion from the exchange. The exchange reported that users started to panic due to the crisis rocking other exchanges.
It is interesting that the week after the FTX collapse, a report shows over 134,000 BTCs left all exchanges.
The transfer of Bitcoin and other assets from exchanges is caused by the regulatory and security scrutiny that will (likely) follow the FTX collapse. Industry players opined that regulatory bodies such as SEC and CFTC would increase their searchlight on these exchanges. Significantly, some of these exchanges have insider dealings contrary to regulations— similar to FTX and Alameda dealings.
It is on this premise that investors are pulling out their BTC from exchanges to avoid being caught in a similar "FTX debacle."
Will Clemente tweeted that over 200,000 BTC worth about $3.4 billion were moved off exchanges in the last 30 days. Experts opine that the exodus of these BTC signifies a bullish phase. That is, investors, rather than selling their Bitcoin, are holding and saving in self-custody. This is one of the events that lead to a bullish run.
Furthermore, Glassnode reported in its weekly on-chain report that long-term holder supply reached an all-time high of 13.9 million BTC. Similarly, long-term BTC holdings have reached 72.3% of its circulating supply.
Report shows that the accumulation of the token began in late July. While many expected it to decline after the FTX collapse, BTC accumulation maintained the run. Furthermore, Glassnode added that after each market leg down in 2022, coin re-distribution and re-accumulation have increased.
Significantly, within that period, BTCs worth between $18,000 and $24,000 was acquired. Experts say the supply is aging into a long-term bracket, surpassing six months of holding.
Amidst the exodus of Bitcoin from exchanges, the price keeps consolidating— even after the FTX meltdown. Albeit, it has reached its highest price in the last month after a 3.5% gain.
For instance, since the bear cycle low on the 22nd of November, BTC has surged by about 13.5%. It now trades at about $17,781. However, the current price value signifies that the token has declined by 74.3% since its all-time high.