Bitcoin Supply on Crypto Exchanges is Falling: Fidelity

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Bitcoin reserves on cryptocurrency exchanges have fallen to their lowest in over six years. Publicly traded companies have increased their accumulation of the digital asset following the US presidential election, as reported by Fidelity Digital Assets.

“We’ve observed a decline in Bitcoin supply on exchanges due to purchases by public companies, a trend we expect to continue,” Fidelity announced on the X platform.

Fidelity noted that Bitcoin supply on exchanges has decreased to about 2.6 million BTC, hitting the lowest point since November 2018. Over 425,000 BTC have been withdrawn from exchanges since November, a sign often associated with long-term investment rather than short-term trading.

During this period, publicly traded companies acquired nearly 350,000 BTC, according to Fidelity. Fidelity Digital Assets, a subsidiary of the $5.8 trillion asset manager Fidelity Investments in Boston, Massachusetts, was established in 2018, predating the recognition of cryptocurrency as an institutional asset class.