Self-Custody Surges as Bitcoin Withdrawals Outpace Deposits

15. Februar 2023

• Exchange deposits and withdrawals of Bitcoin are often good indicators of market sentiment.
• In February 2023, the total number of Bitcoin transactions surpassed 307,000, reaching a two-year high.
• Since 2014, the dominating trend was for exchange deposits to outpace withdrawals until September 2022 when withdrawals outpaced deposits.

The Impact of Exchange Deposits and Withdrawals on Market Sentiment

Exchange-related deposits and withdrawals of Bitcoin can be an indicator of current market sentiment. When the number of exchange deposits grows, it indicates that liquid supply is increasing and investors are ready to trade. On the other hand, if there are more exchange withdrawal than deposit transactions taking place then investors may be less interested in trading and hodling their BTC off exchanges instead.

Bitcoin Transaction Numbers Reach Two-Year High

In February 2023, the total number of Bitcoin transactions surpassed 307,000 – a two-year high – according to data analyzed by CryptoSlate. Previously recorded transaction numbers had correlated with Bitcoin’s price rallies as seen in late 2017 when 400,000 transactions were recorded which helped fuel the bull run that pushed Bitcoin to its all-time high of $20,000. This pattern was repeated again in early 2021 although this time around Bitcoins price continued rising even after the transaction numbers peaked which showed that this bull run was fueled by derivatives rather than just exchange related activity alone.

Exchange Deposits Outpacing Withdrawals Until September 2022

Since 2014 it has been observed that exchange deposits have generally outnumbered withdrawals up until September 2022 when this trend was broken; 53 000 BTC was withdrawn during this month while only 52 000 BTC was deposited into exchanges at this time. This caused an increase in illiquid supply as investors chose not to trade their coins and instead opted for hodling them off exchanges instead indicating a bullish sentiment within the market at large.

What Does This Mean for The Future?

The recent rise in transaction numbers combined with investors opting for self-custody rather than holding their coins on exchanges could indicate that we might see another crypto bull run coming soon as investors anticipate further gains from their investments over time based on their current views on market sentiment overall.


In conclusion it appears that the recent rise in transaction numbers along with investor behavior shows a shift towards a more bullish outlook on Bitcoin’s future prospects which could potentially lead to another crypto bull run if these trends continue throughout 2020 and beyond into 2021 and beyond..