Bitcoin Reserves Hit Seven-Year Low Amid Surge in Institutional Buying

According to a recent report from Cointelegraph, the landscape of Bitcoin liquidity is shifting dramatically. As of January 13th, dwindling institutional demand has led to a significant decline in Bitcoin reserves on cryptocurrency exchanges, now at 2.35 million BTC. This figure marks a near seven-year low, reminding investors of levels last observed in June 2018, when Bitcoin was priced above $7,000. The implications of this reduction are profound, potentially signaling a future supply shock. Notably, data from CryptoQuant supports these findings, indicating strong purchasing activity among institutions. André Dragosch, Research Director at Bitwise, suggests that the current downtrend is primarily driven by institutions seizing opportunities on discounted prices. This enduring trend raises questions regarding future market dynamics and the overall liquidity of Bitcoin, particularly as institutional investors continue to consolidate their holdings.