Bitcoin Supply on Exchanges Hits 5-Year Low – So Why Isn’t Price Soaring?

Typically, such a steep decline in exchange reserves is seen as bullish, signaling reduced selling pressure. But despite strong accumulation trends, Bitcoin’s price remains relatively stable.

Institutional Demand Is Rising

The tweet highlights several powerful tailwinds:

MicroStrategy just added 15,000 BTC to its holdings. Spot Bitcoin ETFs continue stacking BTC. Sovereign wealth funds are circling the asset.

With major buyers scooping up supply, many expected prices to surge. Yet the market hasn’t responded with the explosive momentum some anticipated.

What’s Missing?

The image shared by Swan shows a historical comparison between exchange balances and Bitcoin price. It implies that while falling exchange balances often correlate with future rallies, there can be a delay before the price reacts. Market participants may still be digesting recent macroeconomic conditions or anticipating key regulatory and liquidity shifts before the next move.

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