The cryptocurrency self-custody trend has been gaining momentum as Bitcoin approached the $100,000 price threshold last week, as reported by the hardware wallet provider Trezor. Trezor disclosed to Cointelegraph on Nov. 27 that there has been a 600% surge in weekly wallet sales amidst Bitcoin’s significant rally, culminating in its record-breaking all-time high above $99,600.
On Nov. 22, when Bitcoin hit its peak value of $99,645 according to CoinGecko data, Trezor experienced its best single day of sales, surpassing the previous high set in May 2023. Trezor’s chief commercial officer, Danny Sanders, attributed the sharp increase in demand for Trezor hardware crypto wallets to various factors, including the outcome of the United States presidential election.
The victory of Donald Trump in the US presidential election earlier in November has had a substantial impact on cryptocurrency markets, leading to a surge in demand for self-custodial crypto storage solutions like Trezor. Sanders stated that the election signified a “complete change” in regulatory approach, transitioning from a hostile to a supportive environment in the US. This shift is expected to provide more regulatory clarity and foster a more favorable environment for businesses to operate in, ultimately boosting institutional adoption.
Despite the US election being a significant event for the crypto industry, Sanders noted that Trezor has not observed significant changes in the share of US demand. He stated, “The difference lies in the enhanced US environment continuing to drive prices to new highs, thereby increasing global demand for self-custody as new customers enter the space.”
In addition to the US election, other factors such as Bitcoin’s fourth halving in April 2024 and macroeconomic developments have also influenced cryptocurrency markets during the current rally. Sanders mentioned that there was already an anticipation of a price surge post-halving due to the four-year cycle and seasonality.
Furthermore, central banks in the US and Europe have been injecting liquidity into the crypto market by reducing interest rates, contributing to the appreciation of Bitcoin prices. Sanders emphasized that while the Trump presidency has further fueled the price increase of Bitcoin, it is not the sole reason for the renewed interest and price surge.
A decrease in Bitcoin reserves on exchanges could indicate a growing adoption of self-custody. CryptoQuant reported that Bitcoin reserves on exchanges such as Binance and Coinbase have dropped to their lowest levels in six years, with investors withdrawing 427,000 BTC, equivalent to approximately $40 billion, in 2024 alone. Sanders highlighted the importance of the mantra “not your keys, not your coins” as the market acknowledges the risks associated with leaving assets on centralized exchanges, a lesson learned from past exchange failures.