Nearly $9 billion worth of Bitcoin has been withdrawn from exchanges over the past month, leading to a significant drop in centralized exchange reserves. This withdrawal coincides with changing market conditions, including price fluctuations and increased volatility.
Analyst reports indicate 79,000 BTC, valued at $8.87 billion, have moved off exchanges during this period. The decline has pushed Bitcoin’s exchange reserves to their lowest point in the observed timeframe. This trend aligns with recent market corrections as liquidations surged, potentially contributing to short-term volatility.
Data shows significant liquidations within 24 hours, totaling $79.9 million, with long positions bearing the brunt of losses at nearly $56.6 million. This suggests traders were heavily positioned for upward movement but faced sharp price corrections.
While Bitcoin’s prices initially retreated after the withdrawal trend, a rebound occurred. The current decline in reserves may signal a shift towards self-custody as investors move coins off exchanges, potentially mitigating immediate selling pressure and shaping short-term supply availability. The market is now observing resistance levels between $112,000 to $114,000, while support lies between $108,000 to $106,000.
As traders adapt their positions based on the evolving market dynamic, it remains to be seen how long these price swings and supply-demand dynamics will persist.