ShayanMarkets
Bitcoin Exchange Reserves Plunge: Is Supply Shock Driving the Next Rally?
During Bitcoin’s bullish cycles, one of the key drivers fueling price surges has been the reduction in available supply. This trend is clearly reflected in the exchange reserve chart, which tracks the amount of BTC held on trading platforms. As shown in the chart, Bitcoin’s exchange reserves have been on an aggressive decline, signaling an accumulation phase by investors. This suggests that market participants are withdrawing their BTC from exchanges and moving them into self-custody, reducing the circulating supply available for trading. Given that exchange reserves serve as a supply-side indicator, this persistent decline could contribute to further price appreciation in the coming weeks.