The amount of Bitcoin on cryptocurrency exchanges has dropped significantly, reaching its lowest level since November 2018. This trend suggests that investors prefer to hold Bitcoin for the long term rather than actively trade it.
The number of Bitcoins on crypto exchanges has fallen to around 2,58 million, down significantly from the 2021 peaks during the previous bull run, according to Cryptoquant.
Cryptoquant data
Bitcoin's shortage potentially reduces selling pressure, and if demand remains the same or increases, Bitcoin's upward movement will continue.
This situation also suggests that investors believe in Bitcoin as a store of value due to the unpredictable global economic environment and rising inflation.
One factor contributing to the decline of Bitcoin on exchanges is institutional adoption. Organizations like Microstrategy, Semler Scientific, and Metaplanet continue to fill their portfolios with Bitcoin. These large investors tend to store BTC in cold storage, which further reduces the supply on exchanges.
