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Bitcoin: Increasing self-custody to impact BTC in this manner

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Despite Bitcoin going below the $30k mark, addresses show bullish sentiment as withdrawals from exchanges start to rise.

Bitcoin: Increasing self-custody to impact BTC in this manner

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  • Investors continued to withdraw Bitcoin from exchanges, indicating positive sentiment.
  • Holders showed faith even as interest in Ordinals declined.

As Bitcoin [BTC] dipped below the $30,000 mark over the last few days, many suspected that the sentiment around the king coin would soon turn bearish. However, recent data indicated that many addresses continued to show bullish optimism.


Read Bitcoin’s [BTC] Price Prediction 2023-2024


Self-Custody is on the rise

According to Santiment’s data, Bitcoin’s supply on exchanges showed an ongoing trend of moving into self-custody, and the recent dip below $30,000 did not elicit strong reactions indicative of fear, uncertainty, and doubt (FUD) or potential imminent sell-offs.

The press time amount of 1.17 million BTC on exchanges was the lowest it has been since November 2018.

Source: Santiment

The growing inclination towards self-custody wasn’t the only positive indicator for Bitcoin. The behavior of multiple addresses suggested that despite the falling price, the accumulation of BTC across the crypto market hadn’t stopped.

One of the major signs of rising BTC accumulation was the surge in the number of whale addresses. According to Glassnode, the number of addresses holding more than 1 Bitcoin reached an all-time high of 1,011,727.

Source: Glassnode

Additionally, old addresses, which have been holding BTC for quite some time, showed no signs of succumbing to sell pressure. This was confirmed by Glassnode’s data, which showcased that the amount of HODLed coins had reached a 5-year high of 7,791,774.891 BTC at press time.

Source: Glassnode

Ordinals lose their appeal

The positive sentiment, however, was not being driven by Inscriptions or Ordinals. Dune Analytics’ data showed that the number of Ordinals transactions occurring on NFT marketplaces had been declining significantly. As a result, the volume of Ordinals trades also fell.

At press time, the largest number of Ordinal transitions were occurring on the Unisat marketplace, followed by Magic Eden and OKX.

Bitcoin Dune Analytics

Source: Dune Analytics

The surge in interest in accumulating Bitcoin may be driven by the growing interest expressed by institutions for a Bitcoin ETF.

ETF race intensifies

According to ETF analyst James Seyffart’s tweet, crucial approval deadlines for various Bitcoin ETFs are approaching. ARK 21Shares’ second deadline is on 13 August, potentially giving them an early mover advantage.

Bitwise has its first deadline on 1 September, while a significant group, including BlackRock’s iShares Coin Trust, faces its first deadline on 2 September.


Is your portfolio green? Check out the Bitcoin Profit Calculator


This grouping might subject them to a collective judgment day, influencing the SEC’s decision-making process.

Lastly, the Valkyrie Bitcoin Fund’s first deadline is on 4 September.

 

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Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates. He is a fan of gonzo journalism, transgressive fiction, heavy metal, and Manchester United.
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