In recent months, there has been a significant decrease in the amount of Bitcoin on cryptocurrency exchanges, indicating a potential shift in investors' strategies towards long-term asset storage.
Reduction of Bitcoin Reserves on Exchanges
According to a CryptoQuant report, Bitcoin reserves on major cryptocurrency exchanges are rapidly declining. For instance, in October 2021, there were 3.2 million BTC on exchanges, whereas the figure has now dropped to 2.46 million BTC. This decrease could tighten the Bitcoin supply on the market, creating upward pressure on prices.
Long-Term Investments and Their Impact
Following the US presidential election won by Donald Trump, 171,000 BTC was withdrawn from exchanges and transferred to cold wallets. This reflects investors' tendencies to hold assets for longer periods. Glassnode data shows an increase of 185,000 BTC in illiquid Bitcoin supply over the past month, representing 75% of the total circulating supply.
Bitcoin Price Fluctuations
Bitcoin prices have recently shown volatility. After briefly rising to $99,600, Bitcoin is currently trading around $95,600. Experts see the shift to long-term strategies as a positive signal for the market.
The reduction in Bitcoin reserves on exchanges and the shift to cold wallets indicate long-term investor intentions. This may support BTC price stability and contribute to the healthy growth of the market.
