Bitcoin transfers from stock exchanges to self-controlled Wallets: reasons and potential effects

After the serious failures of centralized platforms such as FTX, we were able to observe a significant increase in Bitcoin withdrawals from stock exchanges. However, there are other factors that support the thesis of a long -term decline in Bitcoin on stock exchanges.

In the past two years there have been considerable withdrawals from Bitcoin exchanges. The movement of the stock exchanges too Self-controller (English = non-custodial) Wallets corresponds to about 3.09% of the total Bitcoin offer. 648,155 BTC (~ 64 billion USD) were deducted from the stock exchanges, so that around 2,638,936 BTC (~ 260 billion USD) remain on centralized platforms.

We expect these withdrawals to continue to increase Wallets due to the following reasons:

• Due to the increase in hacks and data breakdowns, there is a increasing distrust of stock exchanges.
• With the increasing implementation of the global FATF Travel Rule-Malization shift even more Bitcoin users from the stock exchanges, since this regulation limits the possibility of freely transacting freely.

Present and future

Shortly after Mt.Gox-Hack 2014 we saw an increase in the use of self-controlled Wallets. A repetition of this movement was observed after the FTX debacle, which this time also led to inexperienced users took their coins from these platforms. The enforcement of the Travel Rule of the EU (also known as the Transfer of Funds Regulation) Since January 2025, additional incentives to move bitcoins into self -controlled wallets. We expect these shifts in the on-chain metrics to become visible in the first half of 2025.

This increased movement is further reinforced by the implementation of the Fatf Travel Rule in other regions. Since 2022 more than 10 the region implemented the Travel Rule. Although the FATF recommendations are defined by a self-selected body of bureaucrats from mainly OECD countries, some countries implement them faster and more strictly than others.

The United Kingdom, Switzerland and the EU have a particularly strict implementation of the Travel Rule, which disadvantages its local stock exchanges and customers compared to stock exchanges in less affected countries such as the USA. This misalignment leads to further friction, which makes direct sending and receiving a stock exchange more difficult. Accordingly, people are increasingly preferring Wallets to the stock exchanges.

Potential effects

This displacement of Bitcoins from stock exchanges to self -protected wallets reduces the liquidity, which could lead to an increase in the value in the long term. A potential side effect of self -storage is the permanent loss of bitcoins, which could further reduce the effective overall offer. With this movement we also expect an increase in the sale of hardware wallets.