- Bitcoin exchange reserves have hit a multi-year low of 2.46M BTC, down from 3.2M in October 2021, as 171,000 BTC were withdrawn post-Trump’s election victory and moved to cold storage, signalling a shift toward long-term holding.
- Glassnode data shows that Bitcoin’s illiquid supply held by long-term investors has grown by 185,000 BTC in the last 30 days, reaching 14.8M coins, or 75% of Bitcoin’s total circulating supply.
- Bitcoin has experienced record-breaking prices, peaking at US$99,600, but remains volatile, currently trading at US$95,600 amid a constrained supply and increased long-term holding trends.
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.
According to a report by CryptoQuant, the reserves held by major cryptocurrency exchanges now stand at 2.46M BTC, a notable decrease from 3.2M in October 2021. To explain simply, the reduction in liquid supply often means upward pressure on the price because there’s less Bitcoin available for immediate purchase.
Or as we like to call it, the hodling behaviour, which suggests bullish momentum gripping the market as more investors anticipate future price appreciation. Maybe US$100K (AU$154.6K), anyone?
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Long-Term Holding Gains Traction
Ok, back to the report. The data indicates that since November 5, when Donald Trump secured the US presidential election, over 171,000 Bitcoins have been withdrawn from exchanges, suggesting investors are transferring their holdings to cold storage.
Further insights from Glassnode reveal that Bitcoin’s illiquid supply —coins held by long-term investors not actively trading— has surged by 185,000 Bitcoin in the past 30 days, reaching a record 14.8M coins. This accounts for 75% of Bitcoin’s current circulating supply of 19.79M. In other words, there’s a growing trend of long-term asset retention.
Bitcoin has reached an all-time high of US$99,600 (AU$154.03K), but it’s currently down to US$95.6K (US$149K). Despite these being record-breaking levels, it should be noted the coin has struggled with lots of volatility in the past seven days, as data from CoinMarketCap shows.
Related: Major Sell-Off Imminent? US Gov Transfers $1.9B In Seized BTC to Coinbase Prime
The ongoing decline in Bitcoin exchange reserves highlights a potential supply constraint as more BTC is shifted into crypto wallets, which is often a move that signals intentions for long-term holdings.
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