Bitcoin’s exchange reserves have fallen to a record low of 2.4 million BTC, a drop from 3 million BTC in January 2024, as per a report on Coinpedia. This trend indicates a strong preference for long-term holding, particularly among institutional investors who are withdrawing their assets from exchanges. The tightening supply, combined with growing demand, has driven Bitcoin’s price to an all-time high of $108,000. Analysts believe this scarcity could propel Bitcoin to $120,000, especially following President-elect Donald Trump’s endorsement of a national Bitcoin reserve.
However, concerns loom over declining U.S. demand. The Coinbase Premium Index, a key indicator of North American interest, has dropped despite the price surge, signaling potential fragility in the rally. If global demand remains robust and exchange reserves continue to shrink, Bitcoin's price could see further gains, but sustaining this growth may hinge on renewed U.S. investor appetite.