According to data from CryptoQuant, Bitcoin’s exchange stocks have dropped sharply and are now at their lowest level since early 2021. This is a major shift for the cryptocurrency market. This trend shows that investors’ actions and long-term holding plans are changing in an enormous manner.
CryptoQuant’s most recent research shows that more than 90,700 BTC have been taken out of significant cryptocurrency exchanges just in the last month. This large outflow shows that Bitcoin’s liquid supply is decreasing because users are choosing different ways to store their coins, like cold wallets.
This trend of withdrawals fits with an ongoing trend that has been going on for years, exchanges’ BTC stocks are going down. This is happening because the price of the digital asset has gone up, spot BTC ETFs were recently approved, and people are looking forward to the upcoming halving event.
Bitcoin Reserves Decline As Long-Term Holders Shift
According to CryptoQuant data, BTC exchange stocks were around 2.8 million bitcoins in July 2021. This is an enormous drop of about 900,000 coins since tracking began.Even though the supply is getting more competitive, Glassnode’s most recent report shows a major shift in the way users act: more and more long-term holders are switching to short-term positions.
This change happened because prices were going up and unrealized gains were going up, which made long-term holders want to cash in on their investments.According to Glassnode’s report, the supply of bitcoins held by short-term holders has increased by about 1.12 million bitcoins. This has successfully reduced the pressure on distribution from long-term holders.
In terms of the economy as a whole, Bitcoin’s price has gone up by about 3.2% in the last 24 hours and is now selling at $68,265. It is still about 10% below its all-time high of $73,000, which it hit in the middle of March.
Chief BTC Historian at CoinGeek Kurt Wuckert Jr. talks about Bitcoin’s strength by comparing it to traditional assets like gold and cash. This shows that BTC is not easily controlled by regulators.Joshua Petty, CEO of Ordinals Wallet, is still positive about Bitcoin’s future. He says it could grow even more or be used as a foundation for digital currency, even though there are problems with regulations.
As Bitcoin continues to gain popularity and attention from regular people, the way its supply changes and how its holders act will likely stay important indicators of market trends and mood. With record-low exchange reserves and changing holder dynamics, the next few months will be a time of more change and adaptation in the BTC world.
