- Bitcoin reserves on exchanges drop under 2.6M BTC, lowest level recorded since 2019.
- BTC price surged past $100,000 as exchange supply steadily declined since mid-2022.
- Similar past patterns show Bitcoin rallies often follow major declines in exchange balances.
Bitcoin exchange balances have hit their lowest point since 2019, raising the question of whether another strong rally is taking shape.
BTC Exchange Balances Plummet Below 2.6M
On April 25, 2025, Crypto analyst CryptoRank.io noted that the exchange balances of Bitcoin fell lower than 2.6 million BTC. This represents the 5-year bottom, last achieved in 2019. The most precipitous fall started midway through 2022 and continued at a faster rate between 2023 and 2024, cutting down the tradeable supply considerably.
This action reflects a change in investing behavior in that more investors are taking Bitcoin from exchanges into personal wallets. This type of movement tends to represent a long-term holding strategy, taking liquidity out of the market and maybe creating the potential foundations for upward price action.
Bitcoin Price Climbs as Supply on Exchanges Shrinks
Whereas exchange reserves plummeted, the price of Bitcoin told a different tale. Between the beginning of 2023 and April of 2025, BTC rose from below $30,000 to over $100,000. The graph from CryptoRank.io shows the inverse relationship: while BTC in exchange balances decreased, the price rose.
The tweet from CryptoRank.io asked, “Is a price surge coming?” The data aligns with past cycles, where supply reductions often preceded strong rallies. The current trend mirrors early bull market setups, with long-term holders accumulating and speculative selling easing.
Market Pattern Signals Growing Confidence in BTC
As more Bitcoin is withdrawn from exchanges, it points to rising confidence in the asset’s future performance. Less supply on trading platforms often creates upward pressure as demand remains or increases.
This behavior aligns with historical bull runs. When BTC exchange balances fell before, such as in 2020, Bitcoin experienced a major breakout. Traders now watch closely for similar developments as the market enters a new phase.
