Bitcoin exchange supply drops to 6-year low after ATH

The Bitcoin supply on crypto exchanges has plummeted to around 2.8 million BTC, levels previously only seen in July 2019. This drop in supply follows the token’s recent ATH at $125,506.

The amount of Bitcoin stored on trading platforms like Binance, Bitget, Coinbase and others has dropped significantly after the token reached a new all-time high just a day prior. According to data from on-chain analysis platform Glassnode, the total amount of BTC held on exchange addresses currently stands at just over 2.8 million BTC.

The last time the Bitcoin (BTC) supply on exchanges shrunk to about 2.8 million was in June 2019, back when BTC was just valued at around $8,745. Six years after, the price of BTC has multiplied a few times over, reaching a new high at $125,506. The new milestone may attract more demand from investors looking to acquire the asset.

Not only that, it also suggests a shift in BTC ownership. It could mean that more holders are withdrawing their tokens from centralized exchanges and storing them in self-custody wallets. These could include cold-storage wallets or private storage addresses.

On the other hand, Bitcoin has become a highly attractive asset to external parties; especially to institutional investors looking to stockpile more of the asset into corporate-held treasuries. As of late, more and more companies are following the blueprint set by Michael Saylor’s Strategy.

According to Bitcoin Treasuries, in the past 30 days there have been 25 new entities that decided to jump on the BTC bandwagon. The total number of institutions holding BTC stands at 344 entities, with the largest portion coming from the United States at 122 entities. In fact, the number far outweighs those in Canada, the U.K, Japan, and Hong Kong combined.

At the moment, there are 3.88 million BTC kept in corporate treasuries, surpassing the current supply kept in exchanges by more than 1 million BTC.

Bitcoin price analysis

The drop in BTC supply on exchanges reflects the increasing appetite from investors, as it coincides with the asset reaching a new all-time high. With just 2.8 million BTC held on trading platforms, there is now less sellable supply on the market.

That means when demand rises, there is less BTC for the market to absorb. This could potentially push the price higher, as scarcity often does.

According to data from TradingView, Bitcoin is currently trading around $123,610, slightly below its recent surge that pushed it to a new all-time high of $125,506. Since late September, BTC has been on a rally that’s been carried over by strong momentum; with Bitcoin consistently holding above its 30-day moving average.

This bullish momentum confirms the strength of the breakout that has catapulted BTC to fresh highs. The price remains close to its moving average at $123,636, showing that buyers are still defending support levels despite some profit-taking.

On the other hand, the Relative Strength Index is currently hovering at around 53, indicating a consolidation period after the token’s recent surge. This mid-range RSI suggests neither overbought nor oversold conditions, which could imply that Bitcoin is stabilizing after its strong run-up. The market may be preparing to lift it higher if bullish momentum resumes, though there is still room for short-term corrections.

If Bitcoin can sustain above the $122,000 to $123,000 range, the path toward retesting $125,000 and potentially pushing higher remains intact. On the downside, a clean break below the moving average could trigger a pullback toward $120,000, an area of prior consolidation.