Blockchain analytics platform CryptoQuant has reported a significant dip in Bitcoin exchange reserves. The drop marks the lowest level the reserve has seen in a very long time. Also, it reduces the volume of BTC available for immediate sales.
Bitcoin Investors Holds Coin Long-term
On the brighter side, this situation suggests increasing investor confidence in holding the cryptocurrency long-term.
CryptoQuant claimed that more than 171,000 BTC have left major cryptocurrency exchanges since November 5, when Donald Trump won the U.S. presidential election. The trend indicates that investors are moving their holdings to cold storage. This could be part of a long-term strategy. The fall of exchange reserves began in 2021 and has since registered a gradual plunge.
As of three years ago, Bitcoin reserves were at about 3.2 million but have now fallen to a multi-year low of 2.46 million coins.
BTC Price Sees Slight Dip
According to Glassnode data, its illiquid supply metric, BTC held by long-term investors not actively trading, has increased by 185,000 Bitcoin within the last 30 days. Based on this spike, it has reached an All-time-high (ATH) of 14.8 million coins.
This covers 75% of the current circulating supply of around 19.79 million coins. Amid a supply crunch, the expected outcome is a price rally, but BTC price has plunged by about 2% in the last 24 hours.
Bitcoin is down by 1.12% and currently trading at $95,223.11.
What Happens Next for Bitcoin?
The sudden fluctuations have triggered some anti-BTC individuals to air their views about the future of the digital currency. A few days ago, renowned commodity trader Peter Brandt boldly stated that Bitcoin’s future growth trajectory might not make young investors rich. He based his statement on the fact that as Bitcoin matures, its growth potential may slow down.
In under 24 hours, 219,647 traders have been liquidated, total liquidations at $628.32 million, per Coinglass data. Only Bitcoin accounts for $92.44 million of this liquidation, although the most significant outflow was from long positions overshooting their bet on the potential price of the coin.
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