Analysis: BTC Exchange Reserves Continue to Decline; Supply-Demand Imbalance May Drive Long-Term Rally

On October 13, CryptoQuant data shows that bitcoin exchange reserves have declined to approximately 2.67 million BTC, down by about 130,000 since February 2026, with BTC currently quoted at around $82,500. Analysis indicates that the drop in reserves may reflect a continuous flow of assets into long-term storage wallets and offline custody solutions. Notably, BTC prices have recently rebounded from their lows, while exchange supply continues to contract. If buying demand further recovers, the resulting supply-demand imbalance could create favorable conditions for BTC's long-term upside.