PANews reported on January 13 that according to Cointelegraph, CryptoQuant data showed that as of January 13, the Bitcoin reserves of all cryptocurrency exchanges had dropped to 2.35 million, a low not seen in nearly seven years since June 2018 (when Bitcoin was trading at more than $7,000). André Dragosch, head of research at Bitwise, said the decline in the supply of Bitcoin on exchanges could be attributed to continued discount purchases by institutional participants.

“The beta coefficient of global hedge fund performance relative to Bitcoin has increased from recent cycle lows, suggesting that market exposure to Bitcoin and other crypto assets is increasing,” Dragosch wrote in a Jan. 13 X post. The decline in exchange supply of Bitcoin may indicate the coming of a price rally caused by a “supply shock,” which occurs when strong buyer demand meets a decrease in Bitcoin supply, leading to a price increase.