Derived from BitcoinWorld, Bitcoin exchange reserves have declined by over 400,000 BTC year-over-year, signaling a shift in investor behavior toward self-custody and long-term holding. Data from Santiment shows a significant outflow from centralized platforms, with investors moving funds to private wallets or institutional custody. This trend is driven by security concerns, the 'HODL' mentality, and anticipation of future scarcity. ETFs and public companies now hold a combined 2.5 million BTC, absorbing liquidity from exchanges. The drop in exchange reserves may reduce selling pressure but could also increase price volatility and liquidity challenges for new traders.
Bitcoin Exchange Reserves Drop 400K BTC as Investors Shift to Self-Custody
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