Bitcoin Self-Custody Rises as Exchange Trust Falters, Tether Holdings in Top Wallets Hit 17-Month High

Bitcoin Self-Custody Rises as Exchange Trust Falters, Tether Holdings in Top Wallets Hit 17-Month High

Crypto News – As the trust in cryptocurrency exchanges dwindles, a significant shift in Bitcoin’s storage trends has emerged. Santiment, a leading market intelligence platform specializing in on-chain and social metrics, has observed a notable migration of Bitcoin from exchanges to self-custody. This change in behavior reflects a growing skepticism towards exchange reliability.

Simultaneously, an intriguing development in Tether (USDT) holdings has been reported. The ten largest exchange wallets have accumulated a staggering $15.23 billion in Tether, marking a peak in exchange buying power not seen in the past 17 months. This data was highlighted in a recent social media update by Santiment, where they showcased a chart that effectively illustrates these evolving trends over an extended period.

A closer look at the data reveals that Bitcoin’s presence on exchanges has plunged to a mere 5.38%, the lowest since December 2017. In contrast, the Tether holdings in question, which are at their zenith since June 2022, indicate a strategic positioning by large-scale holders or ‘whales’ in the cryptocurrency arena.

An intriguing intersection of these two metrics was observed between May and June 2023. This period coincides with Bitcoin’s resurgence above the $30,000 mark, a significant recovery from its dip below this threshold in June 2022. Since this crossover, both Bitcoin and Tether metrics have shown consistent trends in their respective trajectories, punctuated by minor fluctuations.

For Bitcoin traders and enthusiasts, the movement of Bitcoin away from exchanges is a critical indicator of market sentiment. Typically, an increase in Bitcoin moving into self-custody is interpreted as a signal that holders are opting for long-term investment strategies, favoring the security of private storage over the convenience of exchanges.

On the flip side, the swelling Tether reserves in the top exchange wallets suggest a brewing momentum among major players to make significant purchases in Bitcoin or other cryptocurrencies. This accumulation of Tether is indicative of a preparatory step for substantial trading activities, potentially signaling a shift in the cryptocurrency market dynamics.