According to the market intelligence platform Santiment, there are at least 400,000 fewer Bitcoin on exchanges compared to the same time last year, which is a positive indicator for the market.
Since December 7, 2024, over 403,000 Bitcoin (BTC) have been moved off exchanges, accounting for approximately 2% of the total supply, as reported by Santiment in an X post on Monday, referencing data from its sanbase dashboard.
Typically, users transfer their Bitcoin from exchanges to cold storage wallets, which theoretically complicates selling and may suggest long-term holding intentions.
“Overall, this indicates a positive long-term trend. Historically, fewer coins on exchanges have been linked to a decreased likelihood of significant sell-offs that could negatively impact an asset’s price.”
“With Bitcoin’s market value around $90K, the top market cap in crypto continues to witness supply being withdrawn from exchanges,” Santiment further noted.
Bitcoin is also moving into ETFs
While a significant portion of the Bitcoin on exchanges is likely returning to hodler wallets, Giannis Andreou, founder and CEO of crypto miner Bitmern Mining, suggested that exchange-traded funds (ETFs) could be collecting these coins as well.
Referencing data from BitcoinTresuries.Net, Andreou stated that ETFs and public companies now possess more Bitcoin than all exchanges combined, following years of outflows and quiet accumulation by ETFs.
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“Institutional ownership has subtly transitioned to a new stage: reduced liquid supply, increased long-term holders, stronger price reflexivity, and a market shifted towards regulated vehicles, rather than trading platforms,” Andreou remarked.
“This transition is more significant than many realize. Bitcoin is no longer finding its way back to exchanges; instead, it’s being directed to institutions that are less inclined to sell. A supply squeeze is developing in real time.”
ETFs and private entities hold more Bitcoin than exchanges
Crypto data analytics platform CoinGlass confirms this trend, with Bitcoin on exchanges reported at around 2.11 million as of November 22, during a period when Bitcoin was experiencing a correction and trading around $84,600.
BitBo reports that ETFs now hold over 1.5 million Bitcoin and public companies possess over one million, together representing nearly 11% of the total supply.
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