Why aren't people using exchanges like they used to?
This shows that people's faith in crypto continues to erode for the foreseeable future. The market has been plunging like a stone for the past few months, and the price of bitcoin has been the decisive factor in this decline. In December of just the previous year, the price of a single bitcoin reached a new all-time high of about $68,000. However, a year later, the digital currency that held the number one spot in terms of market capitalization around the world has had its value decrease by more than 70 percent, and the asset is currently trapped in the low $19,000 level.

The market for digital currencies as a whole has experienced a decline in valuation of more than $2 trillion altogether. The sight is depressing and revolting to behold.

Within the past month alone, more than 38,000 units of bitcoin were removed from exchanges. This is not only a demonstration of how poorly the cryptocurrency market appears to be doing at the time of writing, but it would also seem to suggest that a large number of people are beginning to lose faith in custody firms, and they likely believe that their units are better off being held exclusively by them. In an interview, Tim Enneking, managing director of Digital Capital, provided the following explanation:

There is no question that institutions and so-called "whales" are amassing BTC. For the better part of a year, there has been a steady increase in the number of wallets that contain 100, 1,000, or even more BTC. That is an example of a trend. BTC flows on and off exchanges would seem to be a good indicator of price moves, although, in my experience, it is of little utility since the moves to exchanges usually seem [to be] "just in case" rather than a firm intention to sell rather than an actual intention to sell. Movements off, on the other hand, are a slightly better indicator of price direction, and the major move off that we are currently witnessing is quite a bullish indicator because it indicates that the price will continue to move off.

In addition to being an online attorney, Andrew Rossow is also a web3 advisor. He added his two cents to the conversation by stating:

The evaluation is correct in my opinion. Rather than leaving their holdings up to chance, I believe investors are making financial decisions that they consider to be strategically sound and smart fiscal decisions.

Could This Be a Positive Indication?
Armando Aguilar, an independent crypto analyst, offered the following closing remarks:

The fact that there has been a rise in the amount of Bitcoin being sent from exchanges is a sign that investors are gathering their holdings. When Bitcoin is removed from an exchange, this is often interpreted as a bullish indicator because it indicates that traders are shifting their focus from selling to holding the cryptocurrency and reducing the amount of Bitcoin that is "ready to sell" on the exchange. According to the weekly 'Flows by Asset' report published by Coin Shares, Bitcoin-based investment products have been experiencing a multi-week increase in the amount of capital flowing into them.

Coinbase is one of the largest and most popular digital currency exchanges in the world. Not too long ago, Live Bitcoin News reported that a significant amount of bitcoin was transferred out of Coinbase.