According to CryptoQuant, approximately 90,700 bitcoin have been removed from well-known cryptocurrency exchanges in the last month, highlighting a decline in the currency's supply of liquid coins and suggesting that investors may be adopting a long-term holding strategy.

A multi-year trend appears to be driving the notable exodus from exchanges to cold storage, according to data from CryptoQuant. This tendency appears to be fueled by the rising price of digital assets, the approval of spot Bitcoin ETFs, and the expectation of the halving event.

According to CryptoQuant statistics, as of July 2021, the amount of Bitcoin exchange reserves was roughly 2.8 million, indicating a decrease of about 900,000 coins since the company started monitoring this statistic.

Glassnode's most recent analysis shows a noticeable movement from long-term to short-term holders despite the tighter supply.

According to Glassnode, "the divergence between long and short-term holder supply has started closing following a historical tightness in supply," implying that long-term holders are selling off their holdings as a result of growing unrealized profits and rising prices.

According to the study, the supply of bitcoins for short-term holders has increased by around 1.12 million, therefore mitigating the strain on distribution from long-term holders.

Macroeconomically speaking, the price of Bitcoin (BTC) has increased somewhat over the last day by around 3.2%; as of 1:46 p.m. ET, it was trading at $68,265. It still lags, though, by around 10% from its peak of $73,000 set in mid-March.

Chief Bitcoin Historian at CoinGeek Kurt Wuckert Jr. compares Bitcoin to gold and currency and emphasizes how resistant it is to government repression.

Joshua Petty, CEO of Ordinals Wallet, expressed optimism over Bitcoin's future, saying that despite legal obstacles, it may develop or continue to be the foundation for digital currency.