Bitcoin reserves have sharply decreased in 2024, down to 2.4 million, creating a major supply shock. Investors, particularly institutions, are withdrawing assets from exchanges to hold for the long term, demonstrating strong confidence in Bitcoin's potential.

Bitcoin's price skyrocketed, from $40K at the beginning of the year to a new peak of $104K in November. The inverse relationship between price and reserves has become evident, as supply decreases and strong demand pushes prices higher.

Decreasing reserves and limited supply are positive signals for the market. If this trend continues, Bitcoin could set new records by the end of 2024 and into 2025. However, volatility remains a significant risk, requiring investors to be cautious and strategic.