Bitcoin reserves on major cryptocurrency exchanges, including Binance and Coinbase, have plunged to their lowest levels in years, with more than 171,000 BTC withdrawn since the U.S. presidential election in November 2024.
This shift highlights a growing trend of investors favouring long-term holding over active trading.
The decline in exchange reserves, a trend that began in 2021, underscores Bitcoin’s rising status as a store of value. By October 2021, reserves stood at 3.2 million BTC, but by December 2024, they had fallen to 2.46 million BTC, according to market data.
Data from blockchain analytics firm Glassnode further supports this trend. Over the past 30 days, long-term investors have added 185,000 BTC to the illiquid supply, pushing the total held by these investors to 14.8 million BTC, approximately 75% of the circulating supply.
This indicates a growing confidence in Bitcoin as a long-term investment, with fewer coins available for trading on exchanges.
Despite this tightening supply, Bitcoin’s price recently dropped below the $94,000 mark, a 2% decline that triggered $578.6 million in market liquidations, including $90 million from Bitcoin long positions.
This correction has not shaken investor optimism, with analysts forecasting that Bitcoin could surpass $100,000 by year-end, buoyed by a potential supply shock.
Following President Trump’s re-election, Bitcoin’s price surged to $99,600, driven by expectations of crypto-friendly policies under the new administration.
Experts believe that as more Bitcoin is moved off exchanges, the reduced supply will continue to bolster prices.
With long-term holders dominating the market and adoption rates climbing, Bitcoin is poised for significant growth.
While short-term volatility remains, the underlying fundamentals suggest a bullish trajectory for the leading cryptocurrency.
