The crypto market often experiences “market corrections,” especially for volatile assets like Bitcoin. Recent data shows a significant drop in Bitcoin reserves on exchanges, from 3.2 million in early 2023 to below 2.6 million. This indicates that investors are moving Bitcoin to cold wallets, indicating that they do not plan to sell anytime soon.

Bitcoin’s price has risen sharply throughout 2024, reaching $91,900. However, this rapid increase could trigger profit-taking, leading to a short-term correction, especially as it approaches the psychological threshold of $100,000.

On the other hand, the decrease in reserves on exchanges indicates that the supply of Bitcoin is shrinking, paving the way for a bull market if demand increases. Investors appear to be holding Bitcoin as a long-term strategy, indicating a maturing market.