Bitcoin reserves on cryptocurrency exchanges have hit their lowest level since November 2018, with CoinGlass data showing outflows of 30,000 bitcoins, worth $2.7 billion, over the past week, and 85,000 bitcoins, worth $7.6 billion, over the past month.
Since the beginning of the year, the amount of bitcoin held on cryptocurrency exchanges has fallen from 2.72 million to 2.3 million, as investors move to long-term storage in private wallets.
This trend has coincided with increased institutional investment in Bitcoin through exchange-traded funds, which currently hold 1 million Bitcoin.
BlackRock has emerged as the largest institutional holder of the currency, managing more than 470,000 bitcoins worth $41 billion.
The declining reserves of Bitcoin on exchanges, coupled with the dominance of long-term holders and ETFs, enhances the resilience of the market and paves the way for the possibility of new price increases.