Bitcoin exchange reserves have seen a significant drop recently, according to analyst Ali Martinez, who believes this is a positive sign for the asset’s price. The ‘Exchange Reserve’ metric, which tracks the number of Bitcoin tokens on centralized exchanges, has been decreasing, suggesting that investors are moving their coins off exchanges and holding them in the long-term.
This trend has been observed since early this year and the decline amounts to 400,000 BTC (worth over $27 billion at current rates) in the last eight months. However, the shift in exchange reserves can also be attributed to the approval of spot exchange-traded funds (ETFs) in the US by the Securities and Exchange Commission (SEC).
Spot ETFs provide an alternative for traditional investors who want exposure to Bitcoin prices without having to deal with cryptocurrency wallets and exchanges. At the time of writing, Bitcoin was trading at around $68,000, up 9% over the last week.
