The amount of bitcoin held on crypto exchanges continues to decline rapidly. New figures from market analysis firm Santiment show that since December 2024, over 400,000 bitcoin have disappeared from exchanges. This represents about 2 percent of the total supply. This is a significant shift in a market where liquidity is becoming increasingly important.
Less Bitcoin Available for Sale #
According to Santiment, the declining exchange reserves are mainly a signal that investors are moving their coins off trading platforms and opting for cold storage. This fits a market where large groups of investors are holding bitcoin for longer periods.
In a post on X, Santiment wrote:
“The fewer coins that exist on exchanges, the less likely we are historically to have experienced a major sell-off that causes downward pressure on the price of an asset.”
The current picture aligns with recent price fluctuations. The price has been moving around $90,000 (€77,000) for weeks, but despite these low levels, investors continue to hold their coins.
In the last quarter, bitcoin has fallen by 20 percent from its peak of $126,000 to the current level of $92,400.
Exchange-Traded Funds Absorb an Ever-Larger Share #
Not only are retail investors pulling their bitcoin from exchanges, but institutional players are also playing a major role. Crypto entrepreneur Giannis Andreou points to data from BitcoinTreasuries.net, which shows that bitcoin funds (ETFs) now hold more bitcoin than all exchanges combined.
According to him, the market has entered a new phase: ‘Institutional ownership has quietly entered a new phase: less liquid supply, more long-term holders, stronger price reflexivity, a market driven by regulated vehicles, not by trading platforms.’
Andreou emphasizes that ETFs store bitcoin directly and rarely sell. ‘Bitcoin is no longer going to exchanges. It is going from them directly to institutions that do not sell easily. The supply pressure is building up in real time.’
Various market commentators therefore call this development a fundamental shift in the crypto sector. With more and more long-term holders and regulated funds expanding their positions, the market seems to be slowly but surely moving towards a structurally scarcer supply. Many see this as a solid fundamental basis for the coming years.