Bitcoin supply on exchanges hits 7-year low

The supply of bitcoin on centralized exchanges has dropped by 14.5% of its total circulating supply, hitting the lowest level since 2018. Currently, only 2.8–2.9 million coins remain available for trading on major platforms. The rising demand signals growing investor confidence in bitcoin, CoinMarketCap reports.

Fewer coins on exchanges usually means that traders are moving their crypto to cold wallets. This lowers short-term selling pressure and creates token scarcity. If demand stays high, it could push bitcoin’s price up.

The main reason for shrinking crypto reserves is the steady accumulation of BTC by institutional investors. Bitcoin ETFs and large financial players are pulling huge amounts of their crypto into offline storage.

Plus, long-term holders are choosing to keep the crypto instead of selling, reducing the number of coins in active circulation. According to CoinMarketCap, investors should watch bitcoin ETF inflows, because they often signal big market moves ahead.