Vivek Sen, founder of marketing company Bitgrow Lab, reported that bitcoin reserves on crypto exchanges have depleted to a five-year low.

A chart published by Vivek shows that the amount of BTC stored on trading platforms began to decline sharply in March 2024, apparently after the end of the bull run, during which the Bitcoin price updated its historical maximum, reaching $73,794. However, despite the subsequent bearish trend, crypto exchange clients continued to withdraw coins, which reduced the supply of coins to 2.6 million, worth $171.7 billion at the current rate.

Changes in Bitcoin Stocks on Cryptocurrency Exchanges

However, the famous analyst Willy Woo denied this information and stated that the number of bitcoins stored in exchange wallets has only dropped to a four-year low, because in November 2020, about 2.5 million BTC were on the balance of trading platforms. The inconsistency of the data is explained by the fact that Willy used information provided by Glassnode, which is not trusted by all members of the crypto community.

In any case, the depletion of cryptocurrency reserves on exchanges serves as a bullish signal. If the demand for bitcoins does not decrease, then the decrease in supply will inevitably lead to an increase in the rate of the digital asset. Optimism is also added by the fact that the amount of BTC in the wallets of crypto miners has noticeably decreased to a three-year minimum and is now about 1.5 million. Therefore, they will not be able to exert strong pressure on the price of bitcoin by selling a huge number of coins.