When Bitcoin prices rise, investors tend to sell their assets on exchanges to convert them into cash, thereby increasing exchange reserves. Conversely, when prices fall, investors may buy Bitcoin at lower prices, resulting in a decrease in exchange reserves.

Looking at Bitcoin exchange reserves, we see that up until 2020, reserves increased as the price rose. However, since 2020, regardless of prices falling or rising, exchange reserves have consistently decreased.

- With the upcoming halving event

- Further decline in supply

- Bitcoin adoption is increasing by institutional and individual investors

We anticipate a clear decline in reserves. This suggests that in the upcoming Bull Run, Bitcoin will experience more supply shocks compared to previous periods, which will contribute positively to its price.