❗️ Bitcoin reserves on exchanges are approaching a 7-year low amid hedge fund buying

According to CryptoQuant data, bitcoin reserves on all cryptocurrency exchanges fell to 2.35 million BTC as of 13 January. This value was the lowest in nearly seven years - since June 2018, when bitcoin was trading slightly above $7,000.

The drop in bitcoin supply on exchanges can be attributed to continued buying by institutional participants. Hedge funds have been steadily buying bitcoin, especially on the current drawdown.

The declining supply could signal an upcoming price rise.

In December, US bitcoin spot exchange traded funds (ETFs) bought nearly triple the amount of bitcoin mined by miners, while bitcoin hit a new all-time high of $108,300 on 17 December.