Bitcoin reserves on trading platforms hit 2.3M BTC, marking a dramatic three-year decline from 3.2M BTC in 2022.
Rising Bitcoin prices near $98K point toward a supply-demand imbalance as fewer coins remain available for immediate trading.
Investment experts warn that investors must stay vigilant against emotional decisions and manipulative tactics during abrupt liquidity shifts.
Bitcoin stocks on exchanges have dropped to 2.3 million BTC, their lowest level since 2022, while the price has surged to $98,000. This marks a sharp decline from over 3.2 million coins in 2022, showing a major difference in purchase behavior. Fewer tokens on exchanges reflect reduced selling pressure, which is creating supply constraints and driving the price upward.
Source: Marty Party
Data from CryptoQuant reveals that this trend has persisted steadily, indicating that more investors are choosing lasting holding strategies. Additionally, shrinking exchange reserves highlight probable liquidity issues, which could lead to higher volatility as demand continues to rise.
Why Are Exchange Reserves Declining?
Investors are withdrawing Bitcoin from exchanges to self-custody wallets, and this reduces the availability of BTC for immediate trading. The data suggests that this trend is accelerating, as reserves have dropped by nearly 1 million BTC in just three years. Fewer coins on exchanges also signal a potential supply squeeze, which may lead to even higher prices in the near future.
Bitcoin’s rising price, coupled with declining reserves, demonstrates the influence of supply-demand dynamics. Besides, this consolidation of Bitcoin into fewer wallets could amplify volatility as it reduces market liquidity further.
Marty Party Warns About Market Manipulation
Cryptocurrency analyst Marty Party has explained how whales and exchanges manipulate markets through fear-driven and greed-driven tactics. According to Marty, the first method involves spreading fear to drive prices downward. When smaller investors sell in panic, large holders accumulate Bitcoin at cheaper prices.
The second method involves creating positive sentiment and encouraging purchases at higher prices. This approach leads to greed-driven buying, where smaller investors buy at inflated levels, only to face losses during corrections.
Marty advises investors to remain cautious and not fall for these traps. He recommends holding Bitcoin through such periods and avoiding selling until at least November 2025.
Investors’ Response to Market Changes
With reserves now at 2.3 million BTC, many believe long-term accumulation is underway, as evident in the steady withdrawals. The combination of reduced supply and growing demand is creating strong price momentum, but the market remains susceptible to manipulation.
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