In a surprising move, a massive wave of Bitcoins (BTC) fled centralized exchanges like Coinbase and Binance, marking the biggest departure in over a year. Over $1 billion worth of BTC, or more than 28,000 coins, disappeared from such platforms on December 27th.
Coinbase took the biggest hit, losing a whopping 18,000 BTC in a single day. CryptoQuant reports that Coinbase has seen the most significant outflows overall, with over 31,400 BTC leaving their vaults in the past month. Binance, while not as dramatic, still saw more than 5,858 BTC vanish within 24 hours.
This exodus suggests a shift towards self-custody, where people hold their Bitcoins in personal wallets instead of trusting exchanges. Additionally, it hints at long-term investment strategies, as many seem to be holding onto their coins rather than selling.
This trend aligns with the decreasing amount of BTC on exchanges, now at its lowest since April 2018. This could mean less selling pressure and potentially higher prices in the future. The anticipation of Bitcoin ETFs being approved next year adds to this optimism.
2023 seems to have been a pivotal year for Bitcoin. The network saw a massive increase in users (51 million new addresses in 30 days!), with the average holder having $15,913 worth of BTC and holding for over 4 years.
Long-term holding is further underscored by the fact that a whopping 31% of all BTC hasn’t moved in 5 years! On top of that, the network sees a steady flow of large transactions, indicating continued activity.
Investor interest remains strong, with crypto investment products attracting $103 million in the week ending December 22nd. Bitcoin funds took in a staggering 85% of that influx. This sustained interest bodes well for the future of crypto.
In short, Bitcoin is on the move! The recent exodus and overall user trends suggest a shift towards greater ownership and long-term perspectives. With potential catalysts like ETFs on the horizon, 2024 could be a very interesting year for this digital asset.
