Key Points
- Trezor, a hardware wallet provider, reports a huge increase in demand as Bitcoin approaches $100K.
- The surge in Trezor wallet sales is believed to be influenced by factors such as Bitcoin’s rally and the US presidential election.
As Bitcoin edges towards the notable $100,000 mark, self-custody is experiencing significant growth. Trezor, a provider of hardware wallets, has reported a massive surge in demand, with a 600% increase in weekly wallet sales. This peak demand coincided with Bitcoin’s rise to near the $100K mark last week.
On November 22, Bitcoin reached a record high of $99,645. The impact of this price surge was also felt by Trezor, which recorded its largest single-day sales on the same day. This surpassed the company’s previous sales record set in May 2023.
Factors Driving Trezor Wallet Demand
According to Trezor’s chief commercial officer, Danny Sanders, the increase in demand for the company’s hardware crypto wallets may not be solely due to Bitcoin’s ongoing rally. Sanders suggests that other factors, including the outcome of the recent United States presidential election, could be contributing to the trend.
The victory of Donald Trump is considered a win for the crypto industry, marking a significant shift in regulation, which has brought more comfort to the industry. Sanders notes, “It promises to offer more regulatory clarity, which leads to an improved environment for businesses to operate in the space and increased institutional adoption.”
Interestingly, the United States does not account for a large portion of Trezor’s rapidly growing customer base, which is more globally distributed. However, the improved US environment continues to drive Bitcoin prices to new heights, which in turn boosts global demand for self-custody as new customers enter the market.
Are Centralized Exchanges Losing Relevance?
While there seems to be a growing trend of self-custody, Bitcoin reserves on centralized exchanges like Binance and Coinbase appear to be dropping significantly. This year alone, investors withdrew 427,000 BTC (approximately $40 billion) from exchanges. This has resulted in the lowest reserve levels on these platforms in six years.
Sanders suggests that investors may still be cautious due to past incidents of exchange failures. With these hard lessons learned by the crypto community, the demand for secure hardware wallets like Trezor may continue to rise.
