Bitcoin exchange reserves just hit a level not seen since the Trump midterms

Bitcoin held on centralized exchanges has fallen below 2.708 million BTC, marking the lowest reserve level since November 2018, during the Trump midterms. Unlike 2018 when low reserves indicated capitulation, today's drop suggests holders are moving coins to self-custody amid near all-time-high prices and strong demand drivers. This supply reduction is driven by steady absorption from US spot Bitcoin ETFs, continuous accumulation by corporate treasuries like Strategy, and long-term holders refusing to sell. While declining reserves are generally bullish by tightening liquid supply, they can amplify price moves in either direction due to lower liquidity. However, the current structural setup—shrinking available float against expanding demand channels—resembles the lead-up to Bitcoin's significant rally in late 2020, suggesting a structurally tight market despite inherent risks like regulatory shifts.

(Source：Crypto Briefing)