Bitcoin exchange balances dropping to their lowest since late 2018, as shown in the Glassnode chart, indicating a trend of investors moving BTC to private wallets, which often signals long-term holding and reduced selling pressure.
This trend aligns with historical patterns; a 2023 CoinDesk article noted similar low balances in 2018 were partly due to a Bitcoin Cash hard fork, but today’s context suggests growing confidence in Bitcoin’s value, potentially foreshadowing a supply shock, as mentioned in a 2024 OneSafe blog.
Lower exchange balances can reduce market volatility since fewer coins are available for quick trades, a dynamic supported by Chainalysis data showing fluctuating inflows but an overall decline, which may drive prices up if demand remains steady or increases.
