Key Points
- Bitcoin reserves on major exchanges like Binance and Coinbase have hit multi-year lows, indicating bullish sentiment.
- Investors have withdrawn over 171,000 Bitcoin from these exchanges since Trump’s election victory, suggesting long-term investment plans.
Bitcoin reserves on leading exchanges such as Binance and Coinbase have reached their lowest points in years. This trend strengthens the positive outlook for cryptocurrencies.
Data from CryptoQuant shows that more than 171,000 Bitcoin (BTC) have been withdrawn from these key exchanges since Donald Trump’s win in the U.S. presidential election. These mass withdrawals reduce the supply available for selling, often indicating a long-term investment strategy by holders.
Decreasing Exchange Reserves and Dormant Bitcoin
Although the data highlights significant Bitcoin outflows post-Trump’s victory, this trend can be traced back to 2021. Bitcoin exchange reserves have been on a consistent decline since the crypto’s previous high, demonstrating strong faith in BTC despite market downturns in 2022 and 2023.
By October 2021, exchange holdings were around 3.2 million BTC. As per CryptoQuant, this figure has fallen to 2.46 million tokens at the time of writing. Glassnode’s data supports this, showing an increase in short-term dormant BTC. The platform’s illiquid supply metric, which tracks long-term investor holdings, has grown by 185,000 Bitcoin in the past month.
Bitcoin Adoption and Future Predictions
Approximately 75% of BTC’s current supply, equating to 14.8 million coins, has been inactive since early November. This pattern could continue into 2025 as Trump implements crypto-friendly policies and BTC adoption surges.
Following President Trump’s re-election, the top cryptocurrency soared to a peak of $99,600. However, the broader digital asset market corrected price increases on December 3 due to political unrest in South Korea and profit rotation into altcoins like Ripple (XRP).
Despite these fluctuations, experts such as Fundstrat Capital’s CIO Thomas Lee foresee an upcoming supply shock. They predict that Bitcoin will surpass the $100,000 mark before the end of 2024.