How bitcoin self custody will help reduce future bear market.

[Ojima-ojo]

Is no loner news that Bitcoin movement to cold wallet have been on the increase since 2022 when the Bitcoin market faced one of its most drained bear market, and the reason for such value decrease is not far-fetched as it is attributed to the collapse of several centralized platforms, ranging from the exchange and another investment platform such as Genesis and FTX crisis.


Knowing this reality that Bitcoin on its own can not easily slide into such a bear market, and all the Bitcoin bear markets have been influenced by the activities of those centralized exchanges and their shortcomings, their inability has been the cause of all the crisis rocking Bitcoin and the general cryptocurrency market stabilities.


Bitcoin holders are beginning to drive joy in the self-custody of their coins, and this has been reflected in the increase in Bitcoin movement from exchange to custodial wallets where the holder has 100% control.


And for me, this action is going to bring about long-term stability and a minimal occurrence of a bear market most especially a market crash-like bear condition, because if a large number of Bitcoin holders move their Bitcoin into the cold wallet, it will reduce the over depends and trust issues that have to accompany exchange usage/ centralized non-custodial.

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[The Cryptovator]

I am not getting exactly what's the relationship between the bear market and moving funds into a custodial wallet. We should always practice non-custodial wallets to secure our funds either a bear or bull market. Storing funds into centralized exchanges became highly risky after the FTX collapse. That means any CEX would collapse anytime and claim bankruptcy. That situation creates a bear market actually. However, we shouldn't trust any CEX right now, and secure our funds with a non-custodial wallet unless you need to trade.

[Rruchi man]

~

Something must lead to a bear market, If it is not the CEX, it will be something else.

Bear Markets results from factors that we cannot control, so no matter how many people in cryptocurrency practice self custody, there will always be a bear market for some other reasons.

It will not be pragmatic to expect a bull market and no occurrence of an event that will really affect the price of bitcoins negatively.

[Smeet]

I don't know if there is a direct relationship between bitcoin self custody and bear markets. If majority of folks don't keep their bitcoin is self custodial wallets, that could mean they are keeping more on CEXs and this can lead to more trading.

However, the supply of bitcoin available on CEXs for trading doesn't denote a bear or bull market. Many more factors are involved.

[OgNasty]

I think that a lot of market makers are using extreme forms of leverage to manipulate markets and get funds from their customers. Trading helps give them profits to leverage and depositing coins gives them fuel for manipulation. Eventually the thought is enough people will self custody causing market manipulators to crash like FTX as they run out of customer funds to play with.

[Oshosondy]

Is no loner news that Bitcoin movement to cold wallet have been on the increase since 2022 when the Bitcoin market faced one of its most drained bear market, and the reason for such value decrease is not far-fetched as it is attributed to the collapse of several centralized platforms, ranging from the exchange and another investment platform such as Genesis and FTX crisis.

People will always be people. After they are moving to noncustodial wallet after FTX collapse, the exchange inflow later increased back to normal later after some months.

And for me, this action is going to bring about long-term stability and a minimal occurrence of a bear market most especially a market crash-like bear condition, because if a large number of Bitcoin holders move their Bitcoin into the cold wallet, it will reduce the over depends and trust issues that have to accompany exchange usage/ centralized non-custodial.

If you look at the 24 hours trading volume on every crypto exchange, you will see how people are trading cryptocurrencies and noticed that there is nothing yet change, it is still just like it was before.

[Aanuoluwatofunmi]

Knowing this reality that Bitcoin on its own can not easily slide into such a bear market, and all the Bitcoin bear markets have been influenced by the activities of those centralized exchanges and their shortcomings, their inability has been the cause of all the crisis rocking Bitcoin and the general cryptocurrency market stabilities.

Are you saying we should attribute the bitcoin market stability and price to the activities and success of the exchanges? I don't think they have the tenacity to hold onto any vital aspect of bitcoin market value determination because bitcoin itself depends on it market supply and demand within it's network, if more than five exchanges should closedown today, it makes no difference from what we expect to see with bitcoin market value in the nearest future, except some more factors affected it's market demand and supply rate which may cause the market price to change.

[letteredhub]

Is no loner news that Bitcoin movement to cold wallet have been on the increase since 2022 when the Bitcoin market faced one of its most drained bear market, and the reason for such value decrease is not far-fetched as it is attributed to the collapse of several centralized platforms, ranging from the exchange and another investment platform such as Genesis and FTX crisis.

People will always be people. After they are moving to noncustodial wallet after FTX collapse, the exchange inflow later increased back to normal later after some months.

Of a truth humans will always be humans, all fears has subsided after all we still need to trade and the mucd conducive platforms for trading our cryptocurrenciea are the centralized exchanges that's why we won't stop seeing more and more bitcoin or cryptos left in Cex because many will see it as burdensome and stressful to now and then be transferring their funds to their selfcustody wallet after each trade is done with.  However, outside the corridor that it's a risk leaving our assets in Cex it has nothing to do with the price of bitcoin bull or bear. The factors that influences bitcoin market price are purely not a custodial factor.

[milewilda]

I am not getting exactly what's the relationship between the bear market and moving funds into a custodial wallet. We should always practice non-custodial wallets to secure our funds either a bear or bull market. Storing funds into centralized exchanges became highly risky after the FTX collapse. That means any CEX would collapse anytime and claim bankruptcy. That situation creates a bear market actually. However, we shouldn't trust any CEX right now, and secure our funds with a non-custodial wallet unless you need to trade.

Maybe he do mean that if there would be less coins that would be traded up then there would be no such huge movements like declines but come to think that coin circulation is something that would be relevant.
Even we do know that storing up our coins on wallets which we do have full control doesnt mean that we cant sent out back and forth with those coins to be used on trading. Therefore, this is a condition or situation
which i dont see any sense at all on trying out to avoid bear markets just to have that switch up with those coin possessions into their hardware wallet or getting it out on market circulaiton.
Bare in mind that bear markets or bull ones cant really be stopped on which there would really be cycles that would really be happening no matter what and this had been caused by several factors.
As an individual who do have that kind of fear on putting up their coins on centralized places or simply they dont possess the keys then they would really be that paranoid when it comes to security
which its normal to have that approach on making use of those wallets but this is actually dont have any connection in between market conditions like bear market phase.

[Accardo]

Bitcoin holders are beginning to drive joy in the self-custody of their coins, and this has been reflected in the increase in Bitcoin movement from exchange to custodial wallets where the holder has 100% control.

I think so, if a good number of users hold their private keys they'll be lesser drastic fall of bitcoin price. Yet a lot of task is required here. These exchanges get hacked despite holding the keys that contains the funds of all who patronize the exchange. Self custody doesn't mean that a wallet can't be hacked, if the private key is carelessly stored. Hackers have multiple ways of accessing people's devices. Some users have their private keys stored on computers, written on different papers and not sure of the key's exact location. Thereby increasing the chances of getting hacked. If 90% of bitcoin users go self custody the loss of private keys and giving private keys to hackers by storing keys on sites and emails will definitely affect the loss of funds. Everyone can be thought about the risk of saving bitcoin on exchanges and they'll move to self custody, but they can't be schooled to always stay careful with their keys. Additionally, not every bitcoin user spend time reading about bitcoin.

[serjent05]

If @OP is thinking that people who use non-custodial market will forbid these users from selling their Bitcoin, @OP think again.  Selling one's holding is dependent on the holder, whether they are holding their Bitcoin in an exchange or it was secretly kept in the most secure place, if the holder wanted to sell his Bitcoin, he will retrieve and sell its holdings.

So I honestly don't think that how people keep their BTC will have an effect on the market.

[hatshepsut93]

Bear markets happen when supply expands (holders put their coins for sale) or demand collapses (people with $$ don't put buy orders). It is actually a combination of both factors in different proportions.

Holders moving coins to cold wallets is not changing the supply, because they can send the coins back to an exchange quickly. Even if they will vow to only use DEX, it's still a connected global market and price will change quickly.

[panganib999]

This relation might be a little stretch since there's no direct correlation to bear market movements and the existence/increase in use of cold wallets.

You might be seeing the effects of crashes happening within exchanges which drives the public to resort to self-custodial wallets, and the apparent recovery overtime, and then think that it's the switch from cold wallets that's causing this recovery when it's all just normal market behavior in the first place. It's great and all to think that and perhaps even promote the use of cold-wallet since it instills responsible investing and all that nice shit but at the same time, you're painting the wrong picture especially to newbies who aren't that aware of how bitcoin works just yet. This may make them think that just holding their bitcoins on cold-wallets will shoot its price up when that couldn't be any farther from the truth.

[jeraldskie11]

Moving your Bitcoins from your wallet to an exchange, in my opinion, has no effect on the price because there is no act of selling. However, moving a BTC, especially from a long-term address, is a little concerning because most of the time they probably sell it. If anyone sees it, it may create panic selling. And perhaps this is why holders will not relocate their BTC if it is not absolutely essential. I simply do not believe that this will result in a bear market because there is always support and resistance that can be respected, and those areas have a large number of sellers or buyers. So just because someone is transferring their BTC doesn't indicate they want to sell; sometimes they just want to manipulate the market to make the price goes to their desired direction.

[hd49728]

Market must have bull and bear years, you can not have bull years without any bear years because they have to co-exist to create an actual market. Capital must change hands among investors and it's like blooding movement in human body. Without it, the market will be dead.

Fiascos of FTX, Terra and some others are not real reasons of bear market. Without them, you will have something different that can be considered as reasons of bear market.

I agree if people are more educational about self custodial wallets and benefits, they will have better practice and don't take risk with custodial wallets. Even with better practice, bear market will not be eliminated. It's unrealistic to hope that the market will no longer have bearish years and it will grow steadily forever, exponentially forever.

[Ojima-ojo]

I am not getting exactly what's the relationship between the bear market and moving funds into a custodial wallet.

The sole relationship is that when bitcoin holder store their bitcoin in a CEX exchange wallet, and anything happen along the line just like in the case of the FTX collapse the effect will hit the market in a negative direction immediately and the bear market will last longer and its impact on the investors can be worst since bitcoin holders not only stand the risk of losing their profits but can also lose the entire investment.


But if those Bitcoin are stored in a custodial cold wallet, even though such an incident happens,  the investors will only feel the impact in the short term,  because of market reaction but their Bitcoin holding will be protected since the BTC are in the investor's position and not on the third party wallet.

[Poker Player]

Bitcoin holders are beginning to drive joy in the self-custody of their coins, and this has been reflected in the increase in Bitcoin movement from exchange to custodial wallets where the holder has 100% control.

Lol. I'm a lot more skeptical than you are about this. No matter how many scandals like FTX happen, most retail buyers of Bitcoin will continue to do it in centralized entities and many of them leaving them there, as they leave deposits in their bank.

I am not getting exactly what's the relationship between the bear market and moving funds into a custodial wallet.

We can see that there is a certain relationship, but I don't think it is the only one or that it is absolutely determinant in driving a bull or bear market.

[retreat]

Despite what you mentioned, a crypto holder should be able to hold their tokens in a custodial wallet which will allow them to better manage their tokens and prevent them from risking that their tokens will disappear when the exchange goes bankrupt. It is true that using a custodial wallet is more complicated for some people, because they need to store their private keys properly to prevent hacking or other unexpected things, but storing crypto in a custodial wallet is much better than storing it on a centralized exchange.

[Jawhead999]

People who hold their Bitcoin in non custodial wallet isn't entirely mean they will not sell their coins, you need to know if most people are holding their coins in Trustwallet and this wallet have an internal exchange. The only way to stop people to sell their coins if there's such time deposit like fiat, but it's not and that feature isn't good for decentralization.

Remember, Bitcoin price will not increase just because people are hold their coins, it also depend on the people who want to buy Bitcoin.

[KiaKia]

Not all of them per say, I was on my PC playing multiplayer game online and I meet different people through online gaming, we end up talking about crypto investment through proximity chat and I am not surprised to hear from two guys who still keep their Bitcoin on coinbase, one is from the United Kingdom and the other is from Canada.

Many people want to make money from crypto and when they are asked to create an account on a centralized exchange they always think it's the best place for their crypto, I tried confusing these guys to move their coins off the exchanges and they reply I got was that they believe it's less stressful and safe to leave their coins on the exchanges.

It seems that a lot of people use crypto exchanges like their local banks, and can't help but think that this is why they leave their coins on the exchanges, they simply trust centralized exchanges like they trust their banks.