Trezor, a hardware wallet provider, has reported that the cryptocurrency self-custody trend has gained momentum as Bitcoin approached the $100,000 price point last week.
The firm informed Cointelegraph on November 27 that Trezor has experienced a 600% increase in weekly wallet sales due to Bitcoin’s significant rally, resulting in a historic all-time high above $99,600.
Trezor exceeded its previous record-breaking single sales day in May 2023 on November 22, when Bitcoin attained its highest value of $99,645, according to CoinGecko data.
Danny Sanders, Trezor’s chief commercial officer, stated that the sudden increase in demand for Trezor hardware crypto wallets can be ascribed to various factors, including the results of the presidential election in the United States.
A “complete overhaul” of the regulatory approach to cryptocurrency
Donald Trump’s victory in the US presidential election in early November has significantly affected cryptocurrency markets, increasing the demand for self-custodial crypto storage solutions such as Trezor.
According to Sanders, the election has resulted in a “complete shift” in the regulatory approach, transitioning from a “hostile environment” to a “supportive environment” in the United States.
He also stated that it is expected to provide greater regulatory clarity, resulting in a more favorable environment for businesses to operate in the sector and more institutions adopting it.
Sanders asserts that Trezor has yet to experience significant fluctuations in its proportion of the US market demand despite the US election being a critical event for crypto.
“The distinction is that the enhanced US environment continues to elevate the price, which stimulates global demand for self-custody as new customers enter the market,” the executive stated.
Macroclimate and BTC halving factors
Bitcoin’s fourth halving in April 2024 and macroeconomic developments were additional factors that contributed to the ongoing market rally, in addition to the US election.
Sanders stated, “There was already an expectation of a price increase as part of the four-year cycle, roughly six months post-halving, both in terms of season and halving.”
Additionally, he observed that central banks in the United States and Europe have been driving liquidity to cryptocurrency by initiating rate cuts.
“The Trump presidency fuelled the price appreciation of Bitcoin further but it is not the only reason for the renewed interest and price appreciation.”
The departure of cryptocurrency from exchanges is a favorable indicator of self-custody adoption.
A substantial decrease in Bitcoin reserves on exchanges may serve as additional evidence of the increasing prevalence of self-custody.
Investors withdrew 427,000 BTC, or approximately $40 billion, in 2024, resulting in the lowest bitcoin reserves on crypto exchanges such as Binance and Coinbase in six years, according to CryptoQuant.
“The market continues to acknowledge the risks associated with leaving assets on centralized exchanges, a lesson that has been hard to learn from the collapse of numerous exchanges in the past,” Sanders stated. “The mantra ‘not your keys, not your coins’ remains highly relevant.”
