Bitcoin exchange reserves drop to lowest point in weeks

Bitcoin exchange reserves fell to their lowest in weeks, showing an increase in investors moving out of the currency as a long-term holding strategy. According to CryptoQuant data, the average number of Bitcoins on major centralized exchanges remained at about 2.04 million for most of December. However, over the past 24 hours, more than 33,000 Bitcoins have flowed out, causing exchange reserves to fall to a multi-week low of just over 2 million Bitcoins. According to data from CryptoQuant, Coinbase alone has seen more than 19,000 Bitcoin outflows in the past 24 hours. Bitcoin outflows from exchanges to cold storage have been a year-round trend, likely driven by rising digital asset prices and increased expectations for potential approval of a spot Bitcoin ETF. According to data from CryptoQuant, Bitcoin exchange reserves hovered around 2.2 million in January 2023, indicating a decrease of approximately 200,000 Bitcoins since the beginning of the year.