Bitcoin reserves on cryptocurrency exchanges have dropped to their lowest levels since November 2018, marking a significant shift in the market. This decline, which has seen more than 425,000 BTC leave exchanges since November 2024, is largely driven by the increasing purchases of Bitcoin by institutional investors, particularly public companies.
As of April 2025, the total supply of Bitcoin held on exchanges has plummeted to around 2.6 million BTC, the lowest in over six years, according to Fidelity Digital Assets. Publicly traded firms have been the primary source of this reduction, acquiring nearly 350,000 BTC in the past few months. Industry experts predict this trend will continue to accelerate in the near future.
One notable player in this space is Strategy, a firm co-founded by Michael Saylor, which has made substantial Bitcoin purchases since November 2024. The company has accumulated approximately 285,980 BTC, representing a significant portion of the total Bitcoin purchased by public companies. Strategy’s latest acquisition, disclosed in April 2025, included 6,556 BTC. Other international firms are also following suit, with Metaplanet, a Japanese company, holding 5,000 BTC and planning to double that number this year. In Hong Kong, HK Asia Holdings is raising $8.35 million to bolster its Bitcoin reserves.
The massive outflow of Bitcoin from exchanges has had a noticeable impact on the market. Between April 19 and April 23, 15,000 BTC were withdrawn, coinciding with Bitcoin’s price surpassing $93,000. This pattern suggests that investors are increasingly moving their Bitcoin off exchanges for long-term storage rather than engaging in active trading or selling. Such behavior is often interpreted as a sign of long-term confidence in Bitcoin.
Despite the surge in institutional demand, overall market liquidity remains low. The total supply of Bitcoin on exchanges has fallen by 146,000 BTC in the past 30 days, though this decrease is less than the 311,000 BTC reduction seen in March 2024. Additionally, momentum from new buyers has slowed, with a decline of 642,000 BTC in the past month. Spot Bitcoin ETFs, a key indicator of retail and institutional interest, have also seen minimal activity in 2025, with net outflows of 10,000 BTC, compared to net purchases of 208,000 BTC by this time in 2024.
The drop in Bitcoin reserves on exchanges has shifted market dynamics, giving smaller retail investors a greater role in price movements. The Exchange Whale Ratio, which tracks the dominance of large traders, fell below 0.3 in April 2025, suggesting that retail investors are becoming more influential. However, Bitcoin’s price remains volatile, and analysts warn that a sudden shift in market conditions could propel Bitcoin past the $98,000 mark, though sustained demand signals will be crucial for long-term growth.
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