The potential for Bitcoin’s price to increase appears to be supported by a declining supply of the cryptocurrency on exchanges.
This perspective was articulated by a researcher at the data analytics firm CryptoQuant, who reported on Monday that the quantity of Bitcoin held on exchanges has decreased from 2.8 million to 2.67 million since February.
Currently, Bitcoin’s price stands at approximately $83,485, having remained stable over the previous 24 hours but reflecting an 8% increase over the past month, following a notable surge in performance during August and September. This positive momentum has led numerous analysts to postulate that the bear market may have concluded.
According to the report authored by on-chain researcher Rei, “If buying demand continues to improve while exchange supply remains low, BTC could benefit from a supply-demand imbalance, creating favorable conditions for a longer-term upward trend.”
The report elaborated on a significant development: “More importantly, in recent weeks, Bitcoin has recovered from its lows while exchange reserves have continued to decline. This trend indicates that the supply readily available for trading is diminishing, even as the market experiences a recovery.”
Additionally, the report suggested the possibility that investors may be withdrawing Bitcoin from exchanges in favor of cold storage solutions.
For the first half of 2026, Bitcoin’s price primarily fluctuated below $65,000. The cryptocurrency had spent a significant portion of the year in a bear market following its peak of $126,080 in October 2025.
However, this trend shifted dramatically in August when news emerged that the U.S. Treasury would be doubling its liquidity-support buyback operations, resulting in a weakening of the dollar and consequently bolstering Bitcoin and other non-yielding assets.
Analysts note that the emerging “debasement trade,” wherein investors allocate funds to hedge against currency devaluation, has gained traction once again. Bitcoin appears to be a primary beneficiary of this trend, reminiscent of its performance in 2024 and 2025.
It is important to acknowledge that Bitcoin’s current price remains over 30% below its all-time high.
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