Bitcoin Supply on Exchanges Hits Five-Year Low Amid Investor Accumulation

Bitcoin’s on-chain data for the first week of December reveals a significant structural shift in investor behavior, indicating stable sentiment and persistent buying despite recent price weakness. Crucially, the total Bitcoin supply held on exchanges has dropped to its lowest level in five years. This long-term trend contrasts sharply with previous cycles, where price declines often triggered panic transfers of BTC to exchanges for selling.

This cycle marks a major divergence: since October, a growing number of investors are treating BTC as a long-term investment rather than a short-term trading asset. This is evidenced by the continuous accumulation, especially by High Net Worth Individuals (HNI) holding over 10 BTC, whose total holdings have steadily increased throughout the year, largely unaffected by price volatility. Conversely, small-scale investors (holding less than 10 BTC) have been net sellers over the past year. As of now, HNIs hold 16.524 million BTC, compared to 3.431 million BTC held by small investors. The consistent decline in exchange balances, alongside sustained buying from HNIs, underscores a stable market emotion where investors are choosing to "buy the dip" rather than capitulate, suggesting that institutional demand and long-term conviction are driving the current dynamics. $BTC