Bitcoin reserves on centralized exchanges have plummeted to their lowest level since 2018, signaling a shift toward long-term holding. Institutional demand and self-custody trends are driving a potential supply crunch, raising bullish expectations for Bitcoin’s price.
- Bitcoin exchange reserves have fallen by 500,000 BTC since late 2024, hitting a multi-year low.
- Institutional investors, including Fidelity, are withdrawing Bitcoin from exchanges, contributing to the supply crunch.
- Reduced exchange supply could stabilize prices but may also lead to increased volatility if demand surges unexpectedly.
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