Bitcoin Supply on Exchanges Hits Record Low Amid Price Surge to New All-Time High

Bitcoin Supply on Exchanges Hits Record Low Amid Price Surge to New All-Time High

The supply of Bitcoin on centralized exchanges has fallen to its lowest level on record, fueling speculation that heightened price volatility may lie ahead.

According to on-chain analytics firm CryptoQuant, the amount of Bitcoin held across exchanges slipped below 2.5 million BTC as of late May 2025. This decline comes alongside a powerful rally that has propelled Bitcoin to a new all-time high above $111,500.

The divergence between exchange reserves and Bitcoin’s price has become increasingly pronounced. While the cryptocurrency’s availability on exchanges has steadily diminished, its market value has surged. CryptoQuant’s charts illustrate this with a rising white line for price and a descending blue line for reserves.

Historically, shrinking exchange reserves have signaled bullish momentum, particularly during periods of strong demand. Analysts believe this may be the start of a new phase marked by more pronounced price swings driven by limited supply.

Institutional investors are playing a pivotal role in shaping the current market structure. Notably, wallets holding between 1,000 and 10,000 BTC have been accumulating heavily, with most of their holdings moving to cold storage. Strategy, one of the leading corporate holders, added 7,390 BTC in May, bringing its total to 576,230 BTC—roughly 2.75% of the total circulating supply—at an average purchase price of $69,726.

Other notable corporate buyers include GameStop and Japan’s Metaplanet, both of which have expanded their Bitcoin treasuries in recent months. Meanwhile, inflows into spot Bitcoin ETFs totaled $5.23 billion in May, according to SoSoValue data, underscoring growing investor appetite.

Governments are also joining the accumulation trend. The United Arab Emirates and Pakistan have reportedly increased their holdings, while discussions are underway in the United States about creating a national Bitcoin reserve.

From a technical standpoint, Bitcoin appears to be in a consolidation phase. Key indicators paint a mixed picture: the Relative Strength Index (RSI) is at a neutral 52, while the MACD has turned mildly bearish. Short-term moving averages are under pressure, though long-term trends remain upward.

Bitcoin continues to trade well above both its 200-day exponential and simple moving averages, both of which are rising. A recovery above the short-term average near $106,000 could reignite the rally toward $110,000 or beyond. However, failure to hold support may result in a pullback to $98,000 or even $94,000.

As the market digests these developments, investors remain watchful for the next major move in Bitcoin’s ever-evolving narrative.