Since October 2021, the amount of Bitcoin (BTC) held on centralized exchanges (CEXs) has dwindled to a three-year low. According to data from CryptoQuant cited by The Block, approximately 51,000 BTC moved out of major CEXs in the last month, indicating easing selling pressure for Bitcoin and a shift towards longer-term holding strategies. Notably, CEX reserves have declined by about 590,000 BTC since CryptoQuant began tracking the metric in October 2021. Julio Moreno, CryptoQuant's lead analyst, highlighted the significant impact of Mt. Gox creditor distributions on the reduction in CEX BTC balances. Additionally, Coinbase's balance shift to custody suggests increased demand from institutional investors and Bitcoin spot ETFs. However, Moreno noted that excluding Mt. Gox and Coinbase, CEX BTC balances have remained relatively stable this year, with recent drawdowns primarily attributed to those two entities.

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