Dec 10, 2025
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Bitcoin Exchange Reserves Drop to Historic Lows Amid Market Volatility
Bitcoin's On-Chain Dynamics Amid $90K Price Holding
- Bitcoin remains above $90,000 as the market anticipates the FOMC meeting, a potential pivot for risk assets.
- Despite price corrections, Bitcoin's exchange reserves have declined to 2.76 million BTC, nearing historic lows.
- This trend suggests investors are moving BTC into long-term custody instead of selling during price drops.
Shrinking Exchange Reserves Indicate Market Strength
- Fewer coins on exchanges suggest reduced immediate sale availability, tightening liquid supply.
- Long-term holders and institutions are driving this trend by moving BTC to self-custody.
- The ongoing divergence between price action and on-chain behavior indicates underlying market strength.
- Potential for a future "supply shock" increases as exchange reserves reach historic lows.
BTC Tests Critical Support Levels
- Bitcoin trades around $90,437, staying above the 200-day moving average, considered a dynamic support level.
- A bounce from the $87K–$88K range shows buyer defense, but structural fragility persists below key averages.
- Breaking the $95K–$97K resistance is crucial for recovery; failure may lead to further consolidation.
