Bitcoin Exchange Withdrawal Rate Declines, Signaling Long-Term Holding

The withdrawal rate of Bitcoin (BTC) from exchanges compared to its inflow has decreased, indicating that investors are strengthening their accumulation movements. The increase in Bitcoin leaving exchanges is interpreted as a signal that investors are opting for self-custody and long-term holding rather than short-term selling. Digital asset analyst Darkfost estimates that the average monthly withdrawal rate of Bitcoin from exchanges is currently 0.97 and continues to decline. A rate below 1 means that more Bitcoin is leaving exchanges than entering them. Darkfost assessed the current dominance of exchange withdrawals in the market as a positive sign. He explained, "The fact that more BTC is leaving exchanges means that some investors who bought Bitcoin are choosing to self-custody and hold it long-term." It is also noteworthy that the dominance of exchange withdrawals is appearing amid a continuous rise in Bitcoin prices over the past month. Generally, when investors move Bitcoin from exchanges to personal wallets, the amount available for immediate sale decreases. However, exchange withdrawals alone cannot definitively determine actual long-term holding or future price direction. This analysis shows that even during the price increase, some investors are continuing the trend of self-custody rather than keeping their Bitcoin on exchanges.

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