Bitcoin Reserves of Exchanges Hit the Lowest Level in the Last Seven Years! What Does This Mean? Here Are the Details

Bitcoin's current supply is decreasing, and exchange reserves are falling to the lowest level in seven years, fueling speculation that the asset could rise to $200,000 alongside increasing institutional demand.

With the Stock Supply Reaching the Lowest Level in Seven Years, Bitcoin Price Could Reach $200,000

Data from CryptoQuant shows that investors have withdrawn $504 billion worth of Bitcoin from exchanges in the past five years. This significant outflow has created a potential supply shock that could substantially reduce the existing supply and drive prices higher.

At the same time, especially the institutional interest in Bitcoin from Wall Street firms and major asset managers continues to grow.

Markus Thielen, co-founder of 10x Research, said during his latest podcast with investor Scott Melker, "We may see this consolidation go higher and there is an incentive to keep prices high."

Trump's Crypto-Friendly Policies Could Boost Bitcoin's Rise

In addition to the rising outlook for Bitcoin, former US President Donald Trump recently signed an executive order declaring the growth of the crypto industry a "national priority".

Industry leaders see this as a turning point. Bitwise CIO Matt Hougan described this move as "largely bullish" and predicted that it would bring trillions of dollars to the crypto market.

Hougan had previously predicted that Bitcoin could reach $200,000 in 2025, a view echoed by Standard Chartered and Bernstein analysts. This week, he suggested that $200,000 could even be a conservative estimate.