BTC exchange supply hits a new low, institutional demand may trigger a global shortage

According to the data, by the end of April 2025, the amount of BTC held by centralized exchanges has dropped to its lowest point in nearly six years, with only about 2.5 million remaining, a decrease of 500,000 from the end of 2024. This phenomenon is widely interpreted as investors transferring BTC from exchanges to personal wallets, typically associated with long-term holding strategies.

Since the beginning of 2023, the trend of BTC flowing out from the exchange has been ongoing, with the platform's BTC reserves at around 3.2 million coins at that time. Over the past year, this trend has accelerated with the entry of large institutional investors.

Institutional demand for BTC may become a key factor driving supply shortages. Recently, some large enterprises have significantly increased their BTC holdings, directly exacerbating the outflow of tokens on exchanges.

A senior BTC expert stated: "We have never seen a situation like this. A global BTC supply shortage is unprecedented, and this is a significant positive signal."

Another well-known cryptocurrency trader pointed out: "The supply of BTC on exchanges has dropped to the lowest level since the third quarter of 2018. Currently, only 2.5 million BTC remain on the platform, a decrease of 500,000 compared to the fourth quarter of 2024. A few days ago, some institutions mentioned that other institutions are continuously buying and withdrawing BTC from the platform. Changes in supply and demand could lead to a significant price increase."

The latest survey shows that more than three-quarters of institutional investors plan to increase their allocation to digital assets by 2025. Many institutions have used BTC for portfolio diversification and as a hedging tool against macroeconomic uncertainties.

In addition, some publicly listed companies are also actively accumulating BTC. Since November 2024, these companies have withdrawn over 425,000 BTC from exchanges, with a total holding of nearly 350,000 BTC.

The reduction in the supply of BTC on the trading platform has multiple effects on the market, including a decrease in selling pressure. As the amount of BTC available for immediate sale decreases, the risk of large-scale sell-offs is reduced, which helps stabilize or even push up prices.

If demand continues to grow while supply remains constrained, the market may face a supply shortage, which historically has often led to sharp price increases.

An on-chain analyst commented: "The fundamentals of BTC have turned bullish, and the conditions for breaking historical highs are already in place."

The shift towards self-custody and long-term holding reflects the maturation of the crypto asset market, with both retail and institutional investors increasingly viewing BTC as a strategic asset rather than a speculative tool.

The decline in the supply of BTC on the trading platform is widely seen as a bullish signal, but it also means that a surge in demand may lead to increased price volatility. In the coming weeks, the market will verify whether this supply shortage will drive the price of BTC into a new upward trend, or if market sentiment will change with the emergence of new macroeconomic data.