Bitcoin (CRYPTO: BTC) exchange reserves have plummeted to a multi-year low, signaling growing institutional demand, but elevated price levels may cause short-term profit taking.
The decline in exchange reserves coincides with a surge in bitcoin accumulation by new institutional players. CryptoQuant community analyst J.A. Maartunn told The Block, “The buying pressure from this new accumulation is something we haven’t seen before. New whales are pushing bitcoin prices higher as they buy more. Right now, these new whales hold 1.97 million bitcoin.”
Why It Matters: This bullish sentiment is tempered by potential profit-taking pressure. CoinDesk reports that over 94% of the bitcoin circulating supply is now sitting in profit, which historically has led to increased selling pressure.
The data shows that long-term holders (LTHs) could be the ones taking profits, with Glassnode defining LTHs as those holding coins for at least 155 days. Currently, LTHs hold only 500,000 BTC at a loss, a small fraction of their total 14 million BTC holdings.
Despite potential profit-taking, Bitcoin dominance is making new cycle highs and approaching 60%, a level last seen in April 2021. The apex crypto has shown resilience even as the DXY index climbs above 103.5, a level that previously coincided with significant price drops.
Read Next:
Image: Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
To add Benzinga News as your preferred source on Google, click here.
