An industry executive has claimed that there is absolutely no way through which one could measure the amount of Bitcoin that was being issued to self-custody wallets. Amidst the fear of uncertainty and doubt over lawsuits against major cryptocurrency exchanges, investors have been offloading their crypto from crypto trading platforms.
As of the middle of this month, the exchange supply of the cryptocurrency did fall to its lowest level since February of 2018- as mentioned through data from Santiment, the crypto intelligence platform. The massive exchange outflows have already been triggered by self-custody growth that was further fueled by the uncertainty that took place around Coinbase and Binance.
Bitcoin Has Been Moving From One Exchange To The Next
The growing trend of self-custody has had quite a big impact on the cryptocurrency markets, which was informed by Brian Quinlivan, the head of marketing of Santiment, on 15th June. One of the most notable results of self-custody is that it leads to decreasing Bitcoin circulation, which further reduces the market capitalization that is tracked by certain websites like CoinMarketCap and CoinGecko.
Quinlivan mentioned that the circulation did tend to dry up as the coins were moved off of the exchanges. He added that the increasing trend of self-custody had a downside in the form of stagnant coins. The executive also noted that this stagnancy could have a major impact on the market capitalization due to the lowered utility of the network as a whole.
Quinlivan stated that the movement of Bitcoin across the exchanges could have a long-term impact on the markets. He mentioned that traders often assumed that if a massive amount of tokens was suddenly moved off exchanges by the whales, the price would rise immediately. He went on to add that what the firm had actually seen was a far more gradual rise.