The past week has seen a significant movement of Bitcoin off centralized exchanges, amounting to over $1 billion. This mass withdrawal has been interpreted as a bullish signal by the crypto community.
According to a report from crypto.news , approximately 16,500 BTC, valued at around $1 billion, was withdrawn from major exchanges over the last week. This figure represents not just a substantial amount of Bitcoin but also a notable trend towards self-custody or cold storage, where investors prefer to hold their assets outside the reach of centralized entities.
“You really have to pay attention to where that Bitcoin is flowing to develop a better analysis of what’s happening,” Brian Dixon, CEO of Off the Chain Capital told Aaron Arnold, co-host of Altcoin Daily on TheStreet Crypto. “If it’s going into self-custody, I would view that as a bullish indicator.”
Self-custody indicates the intention to hold the asset long term for most investors. Some investors might be preparing for a price surge, influenced by recent events like Bitcoin's halving, which historically has preceded significant price increases due to the reduced rate of new Bitcoin entering the market. “It’s (self-custody) actually going to shrink supply. That could create a narrative around scarcity,” stated Brian.
Over the last week, Bitcoin's price experienced a decline, dropping from around $64,100 to a low of $57,886, but has since slightly recovered, trading around $58,000 to $59,000 as of Tuesday.