PANews reported on December 3rd that according to The Block, Bitcoin exchange reserves have plummeted to their lowest level in years, indicating that investors' confidence in long-term holding of Bitcoin is increasing. CryptoQuant data shows that more than 171,000 bitcoins have been withdrawn from major crypto exchanges since Trump won the US election on November 5. This trend has reduced the liquid supply of Bitcoin, indicating that investors are transferring their holdings to cold wallets, which may be part of their long-term strategy. Exchange reserves have been declining since 2021, reflecting a broader long-term holding trend. According to CryptoQuant, exchange reserves were approximately 3.2 million bitcoins in October 2021 and have now fallen to 2.46 million, the lowest level in years.
Similarly, data from Glassnode shows that its illiquid supply indicator (i.e., bitcoins held by long-term investors and not actively traded) has increased by 185,000 bitcoins in the past 30 days to a record high of 14.8 million bitcoins. This accounts for about 75% of the current circulating supply (about 19.79 million bitcoins).
