Bitcoin exchange supply drops 400,000+ coins as ETFs, institutions absorb holdings and retail activity falls to historic lows.
Bitcoin supply held on exchanges has declined steadily over the past year.
Data from various analytics platforms now show hundreds of thousands of coins moving away from trading venues and into storage wallets, ETFs and institutions.
These trends are now affecting how investors read the market and how they judge price risk during market moves.
Bitcoin outflows reach more than 400,000 coins
Santiment reported that over 403,000 Bitcoins were taken off exchanges since December of last year.
This equals about 2% of all Bitcoin in circulation. A year ago, exchanges held close to 1.8 million coins and now, current readings are showing a clear decline.
📊 As Bitcoin’s market value hovers around $90K, crypto’s top market cap continues to see its supply moving away from exchanges. Over the past year, there has been:
📉 A net total of -403.2K $BTC moving off exchanges
📉 A net reduction of -2.09% of $BTC‘s entire supply moving… pic.twitter.com/Y0JTC880Np— Santiment (@santimentfeed) December 8, 2025
Historically speaking, users often move coins from exchanges into personal wallets to reduce sell risk. Thus, this move to cold storage shows that these investors have plans to hold for longer periods.
Retail inflows to Binance hit historic lows
Retail wallets holding up to 1 BTC now show a major drop in activity. CryptoQuant data currently shows a major decline in daily deposits to Binance. These small holders sent far less Bitcoin per day than at any point in the exchange’s history.
A CryptoQuant contributor known as Darkfost noted in a QuickTake post that retail activity dropped to a fraction of its 2022 levels. Daily deposits from this group averaged 2,675 BTC during the 2022 bear market.
Whale vs. Retail Delta shows that, for the first time in Bitcoin’s history, whales are this heavily positioned in longs compared to retail traders.
Whenever these levels got this high in the past, we saw local bottoms forming — but also large positions getting liquidated.… pic.twitter.com/jMKuBXqHNK
— Joao Wedson (@joao_wedson) November 24, 2025
Recent readings now show deposits near 411 BTC per day. This trend marks one of the lowest observations ever recorded.
Darkfost said the pattern is not a short pause. The fall is in line with a larger trend in how small investors use exchanges. Many now buy through spot ETFs instead of sending coins to trading platforms. This change naturally reduces exchange inflows and alters market structure.
Meanwhile, retail interest continues to lag even with Bitcoin near record high and analysts say this changes how price discovery behaves during volatility.
ETFs reshape how smaller investors participate
CryptoQuant compared the fall in retail exchange activity to the growth of spot Bitcoin ETFs.
These funds offer exposure without private keys, seed phrases or self-custody and many small investors prefer this setup, which feels safer and easier than handling wallets.
ETFs reduce the need to move coins to exchanges. They also keep supply locked in regulated products, and this structure changes the flow of coins across the market.
Darkfost said ETFs are not the full explanation for the drop in retail activity.
Even so, they play a strong part in the change. November showed that ETFs can experience outflows during tough stretches. BlackRock’s iShares Bitcoin Trust saw $2.3 billion in net outflows during that month.
Still, ETF use continues to grow over time.
Related Reading: Bernstein Predicts $1M BTC Target as Bitcoin’s Four-Year Cycle Ends
Long-term storage and institutional demand
The combined effect of ETF accumulation, corporate holdings, and personal storage has affected supply conditions. Coins tend to move away from fast trading venues and toward groups that rarely trade.
Because of this, exchange balances now sit far below prior peaks.
In all, platforms like Santiment, CoinGlass, BitBo and CryptoQuant all show these trends from different angles.
Their charts are now showing a market that is trending towards long-term storage, rather than quick profit-taking.