Bitcoin exchange reserves are dropping to levels not seen in years, signaling a significant shift in market dynamics. As holdings on major trading platforms continue to shrink, it's becoming clear that coins are flowing out of exchanges faster than they're coming in. This supply-side squeeze suggests investors are moving their assets to self-custody or long-term storage, which typically indicates growing conviction in the asset. When exchange supplies dry up like this, it often creates conditions where price volatility can spike. The $BTC data tells an interesting story about holder sentiment and on-chain movement patterns during this period.