Bitcoin investors have been progressively moving their holdings to self-custody solutions following the collapse of the world’s second-largest crypto exchange FTX.
On-chain exchange flow data is showing a surge in withdrawals to self-custody wallets, according to analytical data. It was reported that Bitcoin exchange outflows had hit near historic levels of 106,000 BTC per month.
Exchange outflows are usually a bullish sign that BTC is being hodled for the long term. However, in this scenario, it appears to be the result of laundering confidence in centralized crypto exchanges.
When the FTX debacle began, balance changes have increased across all BTC wallet sizes with shrimps that have less than one coin increasing by 33,700 BTC. Whale wallets with more than 1,000 coins have seen an increase of 3,600 BTC indicating that the self-custodian push is happening across the board.
Industry leaders are now starting to advocate self-custody solutions as the phrase not your keys, not your coins bears more weight than ever before. Ethereum educator Anthony Sassano said that crypto holders shouldn’t be storing their assets on centralized exchanges unless their actively trading large amounts.
