- Bitcoin exchange balances hit a five-year low of 2.6M BTC in March 2025, mirroring past supply drops that preceded major price surges.
- From mid-2024 to March 2025, BTC exchange supply fell by 500K as prices increased above $100K, signaling strong long-term investor conviction.
- Declining exchange balances since 2022 alongside rising prices reflect bullish sentiment and reduced short-term selling pressure.
As of March 2025, Bitcoin exchange balances have fallen to their lowest point since 2019. They were at 2.6 million BTC. Historically, price increases have been preceded by similar patterns. Analysts now keep a watchful eye out for any possible bullish market continuance as a result.
The recent data from CryptoRank on the X platform points to the ongoing supply shortage. Bitcoin balances on exchanges have been falling progressively since mid-2024. In the same timeframe, the price went from about $50,000 to above $100,000. The price has moved between $70,000 and $100,000 ever since, but the inverse correlation between balances and price remains visible.
Investor Sentiment Shifts Toward Long-Term Holding
The reduction in exchange balances suggests a growing preference for long-term holding strategies. Besides, when investors move coins to private wallets, it signals reduced short-term selling pressure. This shift in sentiment often aligns with bullish market cycles.
From early 2022 to late 2023, the balances decreased from around 3.35 million BTC to under 3 million BTC. However, simultaneously, the Bitcoin price has risen from 20,000 to 50,000 dollars. Therefore, this repeated trend would tend to support the notion that rising prices are accompanied by declining supplies.
Furthermore, the biggest drop was between mid-2024 and March 2025. Balances fell the most during the five-year period, from 3.1 million to 2.6 million Bitcoin. Strong market demand was shown by the simultaneous spike in Bitcoin’s price above $100,000.
The consistent decline in available exchange supply points to a maturing market phase. Besides, the current balance levels echo conditions last seen in mid-2019. Similar supply patterns at the time predicted price increases for Bitcoin.
