The recent data from CryptoQuant reveals a significant decrease in Bitcoin exchange reserves, dropping to the lowest levels seen since early 2021. Over 90,700 bitcoins have been withdrawn from major cryptocurrency exchanges in the past month, leading to a decrease in Bitcoin's liquid supply. This trend indicates a possible long-term holding strategy among investors. The outflow of bitcoins from exchanges to cold storage aligns with a broader multi-year trend driven by factors such as price increases, the approval of spot Bitcoin ETFs, and anticipation of the halving event.
In July 2021, Bitcoin exchange reserves stood at around 2.8 million bitcoins, marking a decline of approximately 900,000 coins since tracking began. Glassnode's latest report highlights a significant shift from long-term to short-term holders, with the short-term holder supply increasing by around 1.12 million bitcoins. Despite the tightening supply of Bitcoin, long-term holders are reportedly starting to liquidate their assets due to rising prices and increasing unrealized profits.
On the macroeconomic front, Bitcoin's price has experienced a modest uptick of about 3.2% over the past 24 hours, trading at $68,265 at the time of writing. However, it remains approximately 10% below its all-time high of $73,000 from mid-March. Kurt Wuckert Jr., Chief Bitcoin Historian at CoinGeek, draws parallels between Bitcoin and gold, highlighting its resistance to regulatory suppression. CEO of Ordinals Wallet, Joshua Petty, remains positive about Bitcoin's future, suggesting that it could adapt and operate as a foundation for digital cash even in the face of regulatory challenges.
