Bitcoin: Exchange Supply Is Shrinking Sharply

cryptoquant_com Exchange Reserve data shows a clear trend: as $BTC price rises, the amount of #Bitcoin held on major exchanges is declining significantly.

The drop in reserves reflects stronger long-term holding behavior from long-term holders, institutions, and whales. With liquid supply on exchanges decreasing → natural selling pressure is lower even as price has risen substantially.

Compared to the 2020–2021 cycle (when price increases often came with rising reserves due to retail FOMO), the current phase reflects a more mature market, influenced by Spot #ETFs and greater awareness of the risks of holding $BTC on exchanges.

$BTC is currently trading at around ~$77.6K, yet reserves continue to decline rather than rebound.

This signals that supply-demand dynamics are tilting toward tighter supply conditions compared to previous cycles.