Bitcoin trading reserves fall to 2.46 million BTC, lowest level in years, indicating long-term investment trend
Bitcoin foreign exchange reserves have reached their lowest level in years, with massive outflows from major crypto exchanges such as Binance and Coinbase. More than 171,000 Bitcoins have moved off these platforms since the November 2024 US presidential election, indicating a change in investor behavior. This downward trend in foreign exchange reserves began in 2021 and reflects growing belief in Bitcoin as a long-term investment despite market fluctuations. By October 2021, foreign exchange reserves were 3.2 million BTC, which had decreased to 2.46 million BTC by December 2024.
This decline in Bitcoin on exchanges is reflected in Glassnode data showing that long-term investors are holding an increasing number of Bitcoins. In the past 30 days, Glassnode reported adding 185,000 BTC to its illiquid supply, bringing the total amount of Bitcoin held by long-term investors to 14.8 million BTC, or approximately 75% of the current circulating supply. did. This suggests that a large portion of Bitcoin is being held rather than traded, reinforcing the idea that many investors view Bitcoin as a store of value rather than a short-term transaction.
Despite this tight supply, the price of Bitcoin has recently fallen by about 2% to below $94,000. The decline triggered market-wide liquidations, with $578.6 million worth of positions liquidated in one day. Of this amount, $90 million came from long Bitcoin positions, indicating that many traders were betting on Bitcoin's continued rise. Even with this price correction, market sentiment remains strong, with experts predicting that Bitcoin's value could rise by the end of the year.
After President Trump's reelection, the price of Bitcoin skyrocketed to $99,600. analyst It is believed that the potential supply shock could push the cryptocurrency above $100,000 by the end of 2024. As Bitcoin continues to flow off exchanges, the available supply will become more limited, which could further support price appreciation. Furthermore, the outlook for Bitcoin remains positive as crypto-friendly policies are expected under the new administration.
Bitcoin reserves on exchanges continue to decline, indicating that more investors are holding Bitcoin for the long term. This decline in supply, combined with Bitcoin's growing adoption, suggests that the cryptocurrency's price could rise significantly in the near future, despite short-term volatility.
