In the past week, over $1 billion worth of Bitcoin has been withdrawn from centralized exchanges. This large-scale withdrawal has been interpreted by the crypto community ,as a positive sign for the market.
According to a report from crypto.news, major exchanges experienced outflows of approximately 16,500 BTC over the past week, totaling around $1 billion. This significant amount of Bitcoin indicates not only a substantial withdrawal but also a shift toward self-custody or cold storage, where investors prefer to keep their assets outside the control of centralized entities.
Brian Dixon, CEO of Off the Chain Capital, explained to Aaron Arnold, co-host of Altcoin Daily on TheStreet Crypto, that analyzing where the Bitcoin is flowing can provide better insight into market trends. “If it’s going into self-custody, I would consider that a bullish indicator,” Dixon noted.
For many investors, self-custody implies a long-term holding strategy. Others ,might be positioning for a potential price increase, possibly influenced by recent events such as Bitcoin’s halving, which historically has led to price surges due to the reduced rate of new Bitcoin entering the market. Dixon added, “Self-custody could actually reduce supply, creating a narrative around scarcity.”
Over the course of the week, Bitcoin’s price dropped from approximately $64,100 to a low of $57,886 but has since partially recovered, trading between $58,000 and $59,000 on Tuesday.
