Bitcoin Exchange Supply Falls to Five-Year Low
Bitcoin exchange supply falls to lowest level since 2019, according to CryptoQuant data. As of the end of April 2025, centralized exchanges hold just 2.5 million BTC — down 500,000 coins from December 2024.
Investors Shift BTC to Private Wallets
This decline suggests more holders are moving their Bitcoin to private wallets for long-term storage. Such behavior typically reflects a reluctance to sell, with investors choosing security and self-custody over trading convenience.
Institutions Drive Massive BTC Withdrawals
Institutional demand is intensifying this trend. Recently, Fidelity purchased $253 million worth of Bitcoin, contributing to accelerated exchange outflows. According to Coinbase, over 75% of institutional investors plan to increase crypto allocations in 2025.
Public Companies Accumulate Bitcoin Rapidly
Public firms, led by Strategy, are also buying aggressively. Since November 2024, over 425,000 BTC have been withdrawn from exchanges. Other corporations have acquired nearly 350,000 BTC, reinforcing the view that supply on exchanges is drying up.
Potential Supply Shock Could Trigger Price Surge
If institutional demand keeps rising while available exchange supply remains tight, the market may face a supply shock. Historically, similar imbalances have preceded sharp price rallies in Bitcoin.
