Donald Trump

Bitcoin

Reserve

<p>Bitcoin’s recent <a href="https://coinpedia.org/news/bitcoin-hits-108k-for-the-first-time-in-history/" target="_blank" rel="noreferrer noopener">surge to its ATH $108k</a> has caught the attention of investors, especially after U.S. President-elect Donald Trump suggested the creation of a national Bitcoin reserve. A major factor driving this surge is the historic drop in exchange reserves, which are now at a record low of 2.4 million BTC. With high demand and limited supply, Bitcoin could soon reach $120K.</p>   
<h2 class="wp-block-heading" id="h-bitcoin-exchange-reserve-hit-record-low">Bitcoin Exchange Reserve Hit Record Low</h2>   
<p>According to Kripto Baykus, a CryptoQuant analyst, <a href="https://cryptoquant.com/insights/quicktake/6762c86212a32e1b223f7f14-Historic-Drop-in-Bitcoin-Reserves-Are-New-Records-on-the-Horizon" target="_blank" rel="noreferrer noopener nofollow">Bitcoin's exchange reserves </a>have been steadily falling throughout 2024, dropping from 3 million in January to a record low of 2.4 million by the end of the year.&nbsp;</p>   
<p>This decline signals a change in how investors are approaching Bitcoin, especially among institutional investors. Many of these investors are adopting the "hodl" strategy, removing their Bitcoin from exchanges in favor of long-term holding.&nbsp;</p>   
<p>Baykus notes that this is a sign of confidence in Bitcoin’s future, with institutional players betting on the cryptocurrency’s potential.</p>   
<h2 class="wp-block-heading" id="h-potential-risks-ahead">Potential Risks Ahead</h2>   
<p>While the supply-side trends are bullish, there are some concerns about Bitcoin’s demand. Yonsei Dent, another CryptoQuant analyst, pointed out a divergence in the Coinbase Premium Index, a metric used to track demand in North America.</p>   
<p>Despite Bitcoin's price surge, <a href="https://coinpedia.org/crypto-live-news/coinbase-premium-index-shows-sign-of-weakness-despite-bitcoin-surge/" target="_blank" rel="noreferrer noopener">Coinpedia news reported</a> that the Coinbase Premium Index has dropped. This suggests that the recent price surge may not be entirely driven by U.S. demand, raising concerns about the sustainability of Bitcoin’s rally in the medium term.</p>   [post_titles_links postid="395046"]   
<h2 class="wp-block-heading" id="h-could-120k-be-next">Could $120K Be Next?</h2>   
<p>As these reserves shrink and Bitcoin becomes scarcer, its price has been rising. At the start of 2024, Bitcoin was valued at around $40,000. By November, it had soared past $100,000, even hitting a new high above $108,000.&nbsp;</p>   
<p>With <a href="https://coinpedia.org/news/is-bitcoins-21m-supply-a-lie-blackrocks-controversial-take/" target="_blank" rel="noreferrer noopener">Bitcoin’s supply</a> tightening and demand staying strong, experts believe that Bitcoin could continue to set new price records through the rest of 2024 and into 2025. If the current trends continue, Bitcoin could reach new highs, possibly even hitting $120,000.&nbsp;</p>   [article_inside_subscriber_shortcode title="Never Miss a Beat in the Crypto World!" description="Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more." category_name="News" category_id="6"]   
<h2 class="wp-block-heading" id="h-faqs">FAQs</h2>   
<div class="schema-faq wp-block-yoast-faq-block">
 <div class="schema-faq-section" id="faq-question-1734603925323">
  <strong class="schema-faq-question"><strong>What is the Bitcoin exchange reserve?</strong></strong> 
  <p class="schema-faq-answer">Bitcoin exchange reserves refer to the total BTC held on trading platforms, now at 2.4 million due to growing hodling by institutional investors.</p> 
 </div> 
 <div class="schema-faq-section" id="faq-question-1734603931506">
  <strong class="schema-faq-question"><strong>What is the available supply of Bitcoin?</strong></strong> 
  <p class="schema-faq-answer">The total Bitcoin supply is capped at 21 million coins, with over 19.5 million already mined and in circulation as of 2024.</p> 
 </div> 
</div>

$120k Bitcoin Soon? Exchange Reserves Dry Up Amid Increased Demand

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