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Bitcoin (BTC) reserves on exchanges fell to 2.5 million, returning to 2018 levels.?
The decline has been consistent throughout 2024. Decentralized finance (DeFi) analysts note that this drop coincides with increasing institutional interest in acquiring cryptocurrency.
The BTC supply on exchanges is now at the lowest point since 2018.
All while institutional demand is rising.
A supply squeeze is coming. pic.twitter.com/lpMhsBMA2x
— The DeFi Investor ?? (@TheDeFinvestor) November 26, 2024
BTC Reaches New ATH While Reserves on Exchanges Fall
According to CryptoQuant, Bitcoin reserves on exchanges were at 3.019 million as of January 2, 2024.
Until the end of January, BTC exchange reserves slightly increased, reaching 3.070 million. However, from February onwards, the trends diverged: Bitcoin’s price began to rise, while its exchange reserves declined.
In March, Bitcoin’s price surpassed $71,000. By November, BTC had broken its all-time high (ATH) multiple times, reaching $99,645 on November 22.
Despite this price surge, BTC reserves fell below the 2018 level of 2.5 million.
Historically, low BTC reserves on exchanges are often seen as a signal of a bull run.
Bitcoin Spot ETF Inflows Grow After US Presidential Election
Bitcoin ETF data highlights increasing interest from major institutional players.
On November 7, Bitcoin ETF net inflows reached a new ATH of $1.36 billion, surpassing the previous peak of $1.04 billion on March 12, 2024. While inflows have slightly declined since November 26, they remain higher than in previous months.
This growth is particularly notable following the conclusion of the US presidential election. The uptick to increased confidence in Bitcoin stemming from Donald Trump’s cryptocurrency policies and the new administration’s favorable stance.
