According to a recent report by on-chain data vendor Santiment, the two biggest cryptocurrencies by market cap, Bitcoin and Ethereum, are being actively withdrawn from crypto exchanges.
In the meantime, Whale Alert has detected several big BTC amounts withdrawn from the Coinbase exchange to cold wallets.
"Self-custody increase hints at future bull runs"
The Santiment analytics team has tweeted that investors continue to move their Bitcoin and Ethereum stashes from crypto exchanges to cold storage wallets. The supplies of these two major cryptos on trading platforms have been shrinking and moving into self-custody.
Santiment wrote that even if this is not a perfect indicator, still overall this hints at future bull runs, but these coins need enough time to play them out.
At press time, Bitcoin is trading at $26,905. Ethereum is changing hands at $1,814 per coin, according to CoinMarketCap.
📉👌 #Bitcoin & #Ethereum both continue to quietly see more and more of their existing supplies move into self custody. Though not a perfect indicator, declining coins on exchanges generally hint at future bull runs, given enough time playing out. https://t.co/N1Icon7U19 pic.twitter.com/f5YXzqmZNf
— Santiment (@santimentfeed) May 20, 2023
However, there has been a stir in the crypto community recently related to self-custody as the major cold wallet producer Ledger rolled out an upgrade that has made many customers choose to give up using its wallets.
Ledger now allows the seed phrase to be split in three encrypted parts and be sent to three different devices. The community is concerned that these wallets and the assets stored in them can now become an easy target for hackers with Ledger's new upgrade.
Whales shift BTC from crypto exchanges
Popular crypto tracker Whale Alert has noticed several large Bitcoin transactions made from a major U.S. crypto exchange Coinbase and between anonymous wallets too.
The largest of them carried a whopping 10,000 BTC worth $268,554,134. Other seven transactions moved a total of 5,813 BTC from Coinbase to cold wallets in lumps of 823-830 Bitcoins each.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 10,000 #BTC (268,554,134 USD) transferred from unknown wallet to unknown wallethttps://t.co/d4N2XHqLlJ
— Whale Alert (@whale_alert) May 19, 2023
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