Since January 1, 2025, a significant amount of Bitcoin (BTC) and Ethereum (ETH) has been withdrawn from centralized exchanges, with approximately 121,000 BTC ($10.46B) and $1.74 billion in ETH leaving the platforms. This withdrawal of cryptocurrencies from exchanges reduces the selling pressure and encourages users to adopt self-custody by securing their assets in noncustodial wallets. The decrease in available supply on exchanges strengthens decentralized ideals and incentivizes long-term asset retention. Additionally, the reserves of Ethereum on exchanges have reached lows not seen since 2016, while Bitcoin liquidity on the platforms is comparable to the lows of July 2018. On the other hand, Bitcoin miners have increased their reserves by 1,000 BTC ($86.5M), reducing their reliance on selling newly minted coins to cover expenses and stabilizing the market. This trend of withdrawing cryptocurrencies from centralized exchanges demonstrates a growing belief in the decentralized nature of blockchain and emphasizes the importance of maintaining security and self-reliance in the crypto ecosystem.



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