Bitcoin Exchange Reserves Fall to Lowest Levels in Years, Suggesting a Shift Toward Long-Term Holding

Bitcoin exchange reserves have fallen to levels not seen in years. It could mean a shift in market behaviour toward long-term holding, which could be a positive sign for the industry.

Bitcoin exchange reserves have dropped significantly, indicating a shift toward long-term holding, which could drive up the price.

Major cryptocurrency exchanges now hold 2.46M BTC in reserves, down from 3.2M in October 2021. This decrease in liquid supply could put upward pressure on the price due to less Bitcoin being readily available for purchase.

Data shows that since Donald Trump secured the US presidential election, over 171,000 Bitcoins have been withdrawn from exchanges, suggesting investors are moving their holdings into cold storage.

Moreover, Bitcoin’s illiquid supply, which consists of coins held by long-term investors who are not actively trading, has increased by 185,000 Bitcoin in the past 30 days, reaching a record 14.8M coins. This illiquid supply now accounts for 75% of Bitcoin’s current circulating supply of 19.79M.

Despite Bitcoin reaching an all-time high of US$99,600, it is currently valued at US$95.6K. However, the coin has experienced significant volatility in the past seven days.

The ongoing decline in Bitcoin exchange reserves highlights a potential supply constraint as more BTC is being shifted into crypto wallets, typically indicating an intention for long-term holdings