Bitcoin's (BTC) presence on centralized exchanges (CEX) has sharply declined as positive market trends dominate in the past 48 hours. Data from on-chain analytics firm Glassnode reveals a significant drop, with the Bitcoin supply on exchanges reaching a new low of 1,728,782 BTC as market sentiment turns optimistic.

In the last 24 hours alone, 23,654 BTC have been withdrawn from exchanges, while weekly outflows total 19,859 BTC. This recent reduction is a clear response to the growing bullish momentum around Bitcoin. Over the past month, net outflows were considerably smaller at 9,509 BTC.

Currently, Bitcoin is trading at $65,410, following a week of notable recovery and fluctuations, having climbed from just over $60,000 the previous week.

Large Holders Transfer Assets Off Exchanges

Typically, when significant amounts of Bitcoin are moved off exchanges, it suggests bullish sentiment, as it indicates long-term holding intentions. Assets are often moved to more secure storage, reducing the likelihood of immediate sales, which contrasts with the bearish signal of transferring assets to exchanges for potential selling.

This pattern is similar to the behavior of miners adjusting their reserves before the Bitcoin halving event, where mining rewards are cut by 50%. In the past 24 hours, Binance experienced outflows of 7,155 BTC, while Coinbase Pro saw a significant withdrawal of 16,075 BTC, indicating possible institutional buying.

Future Supply Concerns

A report from crypto exchange Bybit last month highlighted the possibility of Bitcoin supply on exchanges running dry within nine months. This prediction is based on the upcoming Bitcoin halving and the increasing inflows into spot Bitcoin ETFs.

Positive Market Sentiment Drives Supply Decline

The recent rise in Bitcoin accumulation and long-term holding is fueled by positive market sentiment. The release of a favorable Consumer Price Index (CPI) and new institutional investments in spot Bitcoin ETFs have contributed to the current trend. This week, several traditional finance firms disclosed their investments in spot Bitcoin ETFs, causing further price increases in the market.

In conclusion, the ongoing bullish trend has led to a significant reduction in Bitcoin supply on exchanges, indicating strong market confidence and long-term holding strategies.