Bitcoin [BTC] foreign exchange reserves have plummeted and spot retail activity is close to recent lows. Either way, BTC traders may have reason to believe.
This is why.
BTC exchange reserves are declining and retail demand is weak
The Bitcoin split.
On the one hand, foreign exchange reserves across all exchanges have been in freefall, reaching 2.683 million BTC at last reading. That is one of the lowest reserve levels in recent months, at almost 3 million BTC at the end of April-May 2025.
There are fewer coins on exchanges, so no one is in a hurry to sell.
At the same time, the price has recovered from the dip at the beginning of February. The supply is getting tighter.
But here’s where it gets interesting. Spot retail activity is the weakest in the past year given the increase in trading frequency. After peaking when Bitcoin was trading at the ATH range, retail participation declined and has not shown strength since.
Bull score returns to 40!
Put all that against Bitcoin’s Bull Score Index. The last measurement showed almost 40, which is the highest number since October 2025.
That is a big improvement compared to the weaker figures from earlier this year, when the score briefly moved to the bottom of the scale.
The recovery is not over yet. Values above 60 have so far been accompanied by bullish phases, especially during BTC’s rallies towards the $90,000-$120,000 range in 2024 and 2025.
There is a clear contrast with the declining foreign exchange reserves above. Although supply conditions are improving, the pace has yet to fully return. So BTC may come out of its weaker phase even if we may only see a transition rather than a full breakout.
Bull Score needs to regain the 60+ levels in the coming sessions for BTC to rise properly.
Final summary
- Bitcoin exchange reserves have fallen to 2.683 million BTC.
- Despite weak retail activity, BTC’s Bull Score Index has recovered to 40.