FreeYoda on Nostr: I regularly check that graph. To be honest not that easy to fully understand causes ...

I regularly check that graph.
To be honest not that easy to fully understand causes and implications.
Coins on exchanges are from customers so the trend of number of customers and amount of coins per customers is the base (assuming exchanges keep all customer deposits in their #Bitcoin reserves ...?).

So what is the trend of # of customers ? I would expect it to go up ?
Or is the average amount of money per customer decreasing ?
Or are more customers putting their coins in self custody?
Or are exchanges not fully backing their customers deposits with #Bitcoin ?

For me, as not user of exchanges, I don't really care, it just shows supply is decreasing.

But where is the critical number ?
What will happen if Over The Counter can't supply demand, will those buyers move to bidding up in the open market?

Will exchanges sell coins, belonging to customers, since they can't resist those higher prices, will liquidity pools start selling their coins, will whales do, etc etc ?

End result will be higher prices but it would be nice to understand how that game will work out.

My gut feeling tells me few are prepared for what has to happen.