Exchange reserves have declined 18% since Trump’s inauguration, reflecting his administration’s pro-crypto stance encouraging direct custody. Investors appear more comfortable holding Bitcoin in private wallets amid expectations of favorable legislation, reducing immediate sell pressure.
The trend aligns with Trump’s campaign promises to support domestic mining and block central bank digital currencies. By framing crypto as a tool for financial sovereignty, his policies have incentivized long-term holding strategies over active trading.
Analysts note the reserve drawdown tightens available supply, creating upward price pressure as demand outpaces accessible liquidity. This dynamic could amplify volatility during market shocks but supports Bitcoin’s store-of-value narrative among institutional investors.