Bitcoin exchange reserves near 7-year low as hedge funds buy the dip
Bitcoin reserves on exchanges have fallen to 2.35 million BTC, the lowest level in nearly seven years, driven by institutional buying. This decline may lead to a supply shock, potentially resulting in a price rally as demand increases against a shrinking supply. In December, US spot Bitcoin ETFs purchased nearly three times the amount of Bitcoin mined, coinciding with Bitcoin reaching an all-time high of $108,300. Analysts note that while a recovery above $100,000 is possible, current trading activity is low, hindering significant price movements. The broader crypto market is also experiencing reduced trading volume, indicating a lack of market excitement. Despite this, some analysts predict Bitcoin could reach over $150,000 by late 2025 due to anticipated increases in global money supply and investment influx.
