According to CryptoQuant data, the number of bitcoins held by all exchanges has dropped by almost 100,000 in the past month.
Meanwhile, BTC reserves in Bitcoin miners’ wallets increased by about 2,000 over the same period. Both indicators point to a shrinking supply of liquid bitcoin as more bitcoin is held in cold wallets.
Sei Labs co-founder Jeff Feng said that assuming steady demand, a reduction in supply could create an imbalance between supply and demand, pushing up bitcoin prices.