Bitcoin exchange reserves have dropped to a new multi-year low of 2.4M BTC, down from over 3.1M in mid-2023.
This persistent decline in reserve levels suggests that sell-side liquidity is drying up. Historically, such conditions — where BTC held on exchanges is low — precede major bullish expansions as demand exceeds supply.
As BTC trades near $109K, this supply-side squeeze could act as a fundamental tailwind for continuation, especially if demand from ETFs and institutions persists.
The trend mirrors the 2020–2021 bull cycle, when declining reserves foreshadowed explosive price movements.
Written by Chairman Lee
