Bitcoin holders moving coins into self-custody signals long-term conviction and reduces near-term selling pressure

"The exploit could also strengthen the case for institutional custody at a time when spot bitcoin ETFs are attracting mainstream investors. David Lawrence said incidents like Coldcard's are likely to push new investors toward regulated products such as BlackRock's iShares Bitcoin Trust (IBIT) rather than managing private keys themselves."

"This implies fewer coins are readily available for sale on centralized exchanges, reducing the risk of large exchange-driven selloffs. Historically, investors moving assets into self-custody has been viewed as a sign of long-term conviction rather than an intent to trade."