Bitcoin has witnessed a significant drop in exchange holdings, reaching its lowest point in five years. Swan Financial recently reported this shift, observing that investors are actively accumulating Bitcoin for long-term investment. However, despite these substantial outflows and increasing institutional interest, the price of Bitcoin appears to be experiencing a plateau. Analysts at Swan believe this is due to several factors. Some Bitcoin is leaving exchanges for cold storage, which is typically seen as bullish, but a significant portion is being moved into more sophisticated financial structures like ETFs, fund administrators, and trading infrastructure. While this suggests long-term investment, it also means that the price increase might be delayed, creating a sense of uncertainty among traders. Meanwhile, Bitcoin balances on exchanges are at their lowest in five years. Recent movements by companies such as MicroStrategy adding new BTC to its holdings, ETFs accumulating more Bitcoin, and sovereign wealth funds showing growing interest further suggest a shift towards long-term investment, but this hasn’t yet translated into an explosive price surge. Swan analysts point out that the lack of immediate price movement is not unusual in markets where sellers remain active and short-term traders are present. Some buyers might be waiting to see if Bitcoin continues its upward trend before selling their holdings, while others may have bought Bitcoin at lower prices but are now looking for profit by selling at higher levels. Additionally, some believe that Bitcoin’s price will increase due to the scarcity of this asset and a rising demand from investors. This creates an environment where Bitcoin is not yet fully ready for a significant price move. The next stage in Bitcoin’s market cycle might require more decisive price action before a full-blown explosion occurs. One crypto analyst, Rekt Capital, has suggested that Bitcoin is navigating its first correction phase as part of its journey towards the second and potentially explosive uptrend.