The Bitcoin supply available on cryptocurrency exchanges has significantly dropped to approximately 2.8 million BTC, a level not observed since July 2019. This decline in supply follows the token’s recent all-time high at $125,506.
Summary
- Bitcoin exchange balances have reached a six-year low of only 2.8 million BTC, indicative of increasing self-custody trends and greater institutional accumulation.
- BTC price momentum remains robust after hitting a new all-time high of $125,506, with technical indicators suggesting consolidation above $122,000.
The quantity of Bitcoin stored on trading platforms like Binance, Bitget, Coinbase, and others has seen a marked decline after the token achieved a new all-time high just a day earlier. Data from on-chain analysis platform Glassnode indicates that the total Bitcoin held on exchange addresses currently hovers just above 2.8 million BTC.
The last time the Bitcoin (BTC) supply on exchanges dipped to around 2.8 million was in June 2019, when BTC was valued at about $8,745. Six years later, the value of BTC has exponentially increased, reaching a new high of $125,506. This new milestone may attract further interest from investors eager to acquire the asset.
Moreover, this trend suggests a shift in Bitcoin ownership. It may indicate that a growing number of holders are withdrawing their tokens from centralized exchanges to store them in self-custody wallets, which could be cold-storage wallets or personal storage addresses.
Conversely, Bitcoin has become an appealing asset to various external parties, especially institutional investors aiming to accumulate more for corporate treasuries. Recently, an increasing number of companies are adopting the strategy pioneered by Michael Saylor’s approach.
According to Bitcoin Treasuries, in the past month, 25 new entities have jumped on the BTC bandwagon. The total count of institutions holding BTC now stands at 344, with the largest proportion originating from the United States at 122 entities. This number significantly surpasses those in Canada, the U.K., Japan, and Hong Kong combined.
Currently, there are 3.88 million BTC held in corporate treasuries, exceeding the total supply on exchanges by more than 1 million BTC.
Bitcoin price analysis
The decrease in BTC supply on exchanges reflects the growing demand from investors, coinciding with the asset reaching a new all-time high. With only 2.8 million BTC held on trading platforms, the market now has less sellable supply available.
This scarcity implies that when demand increases, there will be less BTC available for the market, potentially driving the price higher.
According to data from TradingView, Bitcoin is currently trading around $123,610, slightly below its recent high of $125,506. Since late September, BTC has experienced a rally sustained by strong momentum, consistently maintaining its position above its 30-day moving average.
This bullish momentum validates the strength of the breakout that has propelled BTC to new heights. The price remains close to its moving average of $123,636, indicating strong support levels are being defended by buyers despite some profit-taking.
In contrast, the Relative Strength Index is currently around 53, indicating a consolidation phase following the recent surge. This mid-range RSI suggests neither overbought nor oversold conditions, implying that Bitcoin may be stabilizing after its significant rise. The market could be gearing up for another upward movement if bullish momentum resumes, although there remains potential for short-term corrections.
Should Bitcoin maintain its position above the $122,000 to $123,000 range, the path to re-testing $125,000 and possibly surpassing it remains viable. However, a decisive drop below the moving average could invite a pullback toward $120,000, a region of previous consolidation.
