#Bitcoin self-custody losses exceed $1.5 billion#

Recent losses from Bitcoin self-custody have raised concerns. According to River Research analysis, Bitcoin losses due to poor self-custody management have surpassed those related to exchanges, totaling approximately 1.6 million BTC (worth over $1.5 billion). This surpasses the 1.2 million BTC (over $1.1 billion) lost due to the Mt. Gox hack and FTX bankruptcy. The research employed a probabilistic model to analyze wallet activity, finding that long-term (over 10 years) unused wallets account for the majority of losses, while short-term inactive wallets have a lower probability of loss. This suggests that many users may be unable to access their Bitcoin due to forgotten passwords, lost private keys, or damaged devices, resulting in substantial losses. This phenomenon also serves as a reminder to investors that self-custody, while offering greater control, also comes with higher risk. It is crucial to carefully safeguard private keys, implement proper backup and security measures, and avoid losses due to mismanagement.