The overall supply of Bitcoin on exchanges has dropped by 5.2% in the last year, a historic low that reinforces the increasing trend toward self-custody. This withdrawal of funds has been seen across all the major exchanges, including Binance, Coinbase, Kraken, Kucoin, and Bitstamp.
It is clear that investors now prefer to store their Bitcoin in their own wallets, rather than entrusting it to third-party exchanges. This shift is a result of recent improvements in custody and security solutions that have made self-custody a more attractive option for investors. Self-custody also provides greater control over funds and has the added benefit of saving money through reduced fees associated with
Major exchanges, including Binance, Coinbase, Kraken, Kucoin, and Bitstamp, have all seen a dramatic outflow of Bitcoin over the last year. This trend demonstrates that investors are increasingly interested in self-custody as a secure way to store their Bitcoin holdings.
Self-custody allows users to keep full control of their assets, providing greater security and agency when compared to third-party custodial solutions. This exodus of Bitcoin from exchanges highlights the importance of self-custody, as investors seek more secure ways to store their funds. With this in mind, it is likely that Bitcoin will continue to move away from exchanges and into self-custodial
This data, sourced from five popular exchanges — Binance, Coinbase, Kraken, Kucoin, and Bitstamp — paints a clear picture of an exodus away from centralized exchange custody wallets. Over time, as more investors flock to personal wallets as a means to safely store their cryptocurrency investments, the total amount of Bitcoin held on exchanges is likely to drop even further.
This shift to self-custody highlights the importance of secure storage solutions, as investors seek greater control over their funds. As more people recognize the value of keeping their funds in personal wallets, this trend of outflow from centralized exchanges is likely to remain steady in the future.
Conclusion
In conclusion, the data from five major exchanges shows a clear trend of investors moving away from centralized exchange wallets and towards self-custody as a way to store their Bitcoin. This shift reflects improved security solutions that have made self-custody an increasingly attractive option for investors.
As this trend continues, the total amount of Bitcoin held on exchanges is likely to drop even further. This demonstrates the importance of secure storage solutions, as investors seek greater control over their funds.
