- Bitcoin’s exchange supply has dropped to 7.53%, the lowest level recorded since early 2018.
- Investors are moving Bitcoin to cold wallets, signalling strong long-term holding behaviour.
- Reduced BTC on exchanges lowers sell pressure, often leading to price stability or growth.
Bitcoin’s supply on exchanges has fallen to its lowest level since February 2018. In an X post on Thursday, analytical platform Santiment revealed that only 7.53% of the total Bitcoin supply remains on exchanges. This marks a significant milestone in long-term holding behaviour among investors.
Source: Santiment
Low Selling Pressure
Lower exchange supply is usually associated with less selling pressure in the short run. This reduces the chances of a sell-off because the available coins in circulation are limited once the original circulation is back in the market. Such behaviour can be attributed to the fact that investors are interested in the long-term performance of the asset as opposed to day trading.
It also implies that many holders are transferring their Bitcoin to cold storage wallets thus, the supply has considerably decreased. This is because these are regarded as secure storage procedures and are often used for long-term storage. Further, long-term investors who keep their BTC outside trading platforms have low chances of selling in the short-term.
Historically, similar declines in exchange balances have preceded bullish price trends. With reduced liquidity on trading platforms, price movements tend to be more stable and can be driven upward during periods of increased demand.
This trend is not only seen among retail investors but also within institutional circles. More financial institutions are opting for secure custodial solutions, indicating a shift in how Bitcoin is perceived—less as a speculative asset and more as a digital store of value.
Related: Bitcoin ETFs Hit $36.34B in Total Inflows After $89M Boost
Self-Custody Gains Ground
The increasing interest in self-custody also reflects concerns about exchange-related risks. In addition, the development points to a maturing crypto market. Investors now appear more strategic and patient, treating Bitcoin as part of a long-term portfolio rather than a high-risk trade.
Bitcoin’s fixed supply model and decentralized nature continue to attract interest amid global financial uncertainty. Many see it as a hedge against inflation and a way to preserve wealth outside traditional banking systems.
The sudden decrease in the exchange supply of Bitcoin is more than just a number game. This means that the trend of long-term storage of cryptocurrencies is gaining popularity due to the rejection of short-term trades.
In this case, therefore, if more BTC is taken out of the circulating space in exchanges, then market volatility may reduce, and upward pressure may start to develop if demand persists. This indicates that the investors were holding long-term assets in preparation for the future.
