Topic: How bitcoin self custody will help reduce future bear market. - page 2. (Read 250 times)

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.