Investors shift Bitcoin reserves to cold wallets for safety

Recent reports indicate a significant decline in Bitcoin (CRYPTO:BTC) held on exchanges, with reserves dropping from 3.2 million BTC in October 2021 to 2.46 million BTC.

This trend suggests that investors are increasingly favoring secure, long-term storage solutions for their Bitcoin holdings.

According to CryptoQuant, the movement of Bitcoin from exchanges to cold wallets is becoming a key factor in market dynamics.

This shift may lead to a tighter supply of Bitcoin, potentially exerting upward pressure on prices.

Following Donald Trump's presidential election victory, approximately 171,000 BTC was withdrawn from exchanges and transferred to cold wallets.

Experts interpret this behavior as indicative of a growing inclination among investors to hold Bitcoin for extended periods.

Supporting this view, recent data from Glassnode revealed an increase of 185,000 BTC in illiquid supply over the past month, which now represents 75% of the total circulating supply.

This shift towards long-term storage solutions reflects a broader trend among investors seeking security amid ongoing market volatility.

Bitcoin's price has recently experienced fluctuations, briefly reaching a high of $99,600 before settling around $95,600.

These price movements highlight the cryptocurrency's inherent volatility while also presenting opportunities for investors.

Analysts view the decreasing supply of Bitcoin on exchanges as a positive sign for the market's future stability.

At the time of reporting, the Bitcoin (BTC) price was $96,720.72.