Analysis: Bitcoin exchange reserves are nearing their lowest level in nearly 7 years, possibly due to hedge funds buying the dip

2025-01-13 19:50:37

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ChainCatcher news, according to Cointelegraph, CryptoQuant data shows that as of January 13, the Bitcoin reserves across all cryptocurrency exchanges have fallen to 2.35 million, the lowest level in nearly seven years since June 2018 (when Bitcoin was trading above $7,000).

Bitwise Research Director André Dragosch stated that the decline in exchange Bitcoin supply may be attributed to the ongoing discounted buying by institutional participants. Dragosch wrote in a post on X on January 13: "The beta coefficient of global hedge fund performance relative to Bitcoin has increased from a recent cycle low, indicating that market exposure to Bitcoin and other crypto assets is rising."

The decline in exchange Bitcoin supply may signal an impending price rally triggered by a "supply shock," which occurs when strong buyer demand meets reduced Bitcoin supply, leading to price increases.

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