#Bitcoin reserves fall to a 7-year low#

Bitcoin exchange reserves have fallen to their lowest level in nearly seven years, raising market concerns. According to CryptoQuant data, as of January 13, cryptocurrency exchanges held 2.35 million BTC, the lowest level since June 2018. This phenomenon is considered a result of continued institutional investor buying, as they buy Bitcoin at low prices, leading to a decline in Bitcoin supply on exchanges. André Dragosch, head of research at Bitwise, said that continued discount buying by institutional participants is the main reason for the decline in Bitcoin supply on exchanges. While analysts believe Bitcoin could be driven higher by supply shocks, current trading volume is not enough to recapture the $100,000 resistance level. Continued institutional purchases of Bitcoin indicate their optimism about the future direction of Bitcoin prices, which could support Bitcoin price increases. However, the current low trading volume also suggests that market sentiment remains cautious, and it may be difficult for Bitcoin to break through the $100,000 resistance level in the short term.