Bitcoin exchange reserves have hit their lowest levels since early 2021, indicating a shift in how holders store BTC. Over 90,700 bitcoins have been withdrawn from major cryptocurrency exchanges in the past month, showing a decrease in Bitcoin’s liquid supply and a trend towards long-term holding strategies among investors.

This significant outflow from exchanges to cold storage aligns with a multi-year pattern, likely influenced by the digital asset’s price surge, the approval of spot Bitcoin ETFs, and anticipation of the halving event. In July 2021, Bitcoin exchange reserves were around 2.8 million, dropping by approximately 900,000 coins since tracking began.

Despite the decrease in supply, Glassnode’s recent report highlights a shift from long-term to short-term holders. With rising prices and unrealized profits, long-term holders are starting to sell off their assets. Short-term holder supply has increased by around 1.12 million bitcoins, absorbing the distribution pressure from long-term holders.

On the macroeconomic front, Bitcoin’s price has increased by about 3.2% in the past 24 hours, trading at $68,265. However, it remains about 10% below its all-time high of $73,000 from mid-March. Kurt Wuckert Jr., Chief Bitcoin Historian at CoinGeek, compares Bitcoin to gold and cash, highlighting its resistance to regulatory pressure. Ordinals Wallet CEO Joshua Petty remains positive about Bitcoin’s future, suggesting it could adapt or serve as a foundation for digital cash despite regulatory challenges.

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