According to the market intelligence platform Santiment, there are currently at least 400,000 fewer Bitcoin on exchanges compared to the same time last year, signaling a positive trend for the market.
Since December 7, 2024, over 403,000 Bitcoin (BTC) have been withdrawn from exchanges, which constitutes approximately 2% of the total supply, Santiment reported in a post on X, referring to data from its sanbase dashboard.
Typically, users transfer their Bitcoin off exchanges into cold storage wallets. This practice can make selling more difficult, indicating a potential long-term holding strategy.
“In general, this is a positive long-term sign. The less coins exist on exchanges, the less likely we’ve historically seen a major sell-off that causes downside pressure for an asset’s price.”
“As Bitcoin’s market value hovers around $90K, the leading market cap in crypto continues to see its supply move away from exchanges,” said Santiment.
Bitcoin is also shifting into ETFs
While a significant amount of Bitcoin on exchanges is likely migrating back to holders’ wallets, Giannis Andreou, founder and CEO of crypto miner Bitmern Mining, mentioned that exchange-traded funds (ETFs) could also be acquiring these coins.
Referencing data from BitcoinTresuries.Net, Andreou stated that ETFs and public companies currently own more Bitcoin than all exchanges combined, following years of outflows and ETFs quietly building their holdings.
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“Institutional ownership has subtly entered a new phase: less liquid supply, more long-term holders, stronger price reflexivity, a market led by regulated vehicles rather than trading platforms,” Andreou explained.
“This shift is bigger than people realize. Bitcoin is no longer moving to exchanges; it’s transitioning directly into institutions that don’t easily sell. The supply squeeze is developing in real time.”
ETFs and private companies hold more Bitcoin than exchanges
Crypto data analytics platform CoinGlass indicates a similar trend, showing that Bitcoin on exchanges stood at approximately 2.11 million as of November 22, when Bitcoin experienced a correction and traded around $84,600.
BitBo states that ETFs hold over 1.5 million Bitcoin and public companies hold more than one million, combining to represent nearly 11% of the total supply.
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