Crypto analytics platform Santiment recently reported that one of the largest whale addresses on the Bitcoin network moved $2.26 billion worth of Bitcoin.
It is said to be a cold wallet belonging to the Binance exchange. Bitcoin is currently trading at $27,680, down 3.4 percent over the past 24 hours, according to Coingecko.
#bitcoinLargest whale address moves $2.26B as $bitcoin Price fell 3.4% https://t.co/fOEWH2JP7H
— Kyptos (@azcoinnews) May 9, 2023
This news is important because Bitcoin’s supply on exchanges has dropped from 6.78% to 5.84%, which is a significant drop. This suggests that the Bitcoin market is undergoing a transformation as investors are moving away from centralized exchanges (CEXs) towards self-custodial options such as personal wallets.
A reduction in the supply of bitcoin on exchanges is a positive sign for the crypto market. This means that many investors choose to store BTC in personal wallets rather than leaving it on exchanges. This approach allows traders greater control over their funds and reduces the risk of losing assets due to hacks or exchange errors.
This self-custody trend was further reflected in other news: BTC volumes on exchanges are now at their lowest level since December 2017, indicating that investors are increasingly interested in options, and the more likely they are to sell in self-custody come smaller.
📉 Quantity #bitcoin The exchange’s ratio is now at its lowest level since December 2017. The five-and-a-half-year low is a good sign of increased interest among traders in self-custody and less risk of being sold back to exchange wallets. 👍 https://t.co/U3n9McxcnH pic.twitter.com/8NjZLf0k2D
– Santiment (@santimentfeed) May 8, 2023
All in all, the recent increase in activity from one of Bitcoin’s largest whale addresses, combined with the drop in BTC on exchanges, suggests that the crypto market is entering a new phase. As more and more investors opt for the self-regulatory option, the market becomes more decentralized and secure. This change in personal wallets could be a positive sign for Bitcoin’s long-term stability and growth.
- Why Bitcoin Price Shakes Amid Anti-Bank Sentiment
- The Weird World of BRC-20 Memecoin Transactions: Challenges and Rewards
according to Kyptos