Bitcoin (BTC) exchange reserves are continuously plummeting as analysts pinpoint the trend to a shortage of sellers. Since the March crash, the reserves on exchanges rapidly fell from 2,950,000 BTC to 2,700,000 BTC.
Within merely seven months, a 250,000 BTC fall in exchange reserves signifies a $2.85 billion decline. Behind the steep trend could be two major factors: a decline in sellers and lower trust toward exchanges.
Bitcoin reserves on exchanges. Source: Glassnode
Is the number of Bitcoin sellers dropping amidst an accumulation phase?
Analysts mainly attribute the sustained drop in Bitcoin exchange reserves to an overall shortage of sellers in the market.
As retail sellers refrain from selling BTC at current prices, institutions are also acquiring more BTC. The simultaneous drop in selling pressure and an increase in buyer demand is an optimistic trend for Bitcoin.
A pseudonymous trader known as “Oddgems” said the data shows Bitcoin is likely moving from exchanges to non-custodial wallets. If so,