🔥Is $BTC Nearing a Supply Shock? Exchange Reserves Fall to Record Lows
Despite $BTC dipping back into the $90K range on chain data from CryptoQuant is revealing a far more bullish structural trend. The total amount of BTC held on centralized exchanges has continued to decline throughout 2025 recently dropping toward 2.76 million BTC one of the lowest levels ever recorded. Even during the sharp November December sell off the highlighted zone on the chart shows exchange balances falling at an accelerating pace.
This continuous reduction in exchange reserves signals that fewer coins are available to be sold on the open market tightening the liquid supply. What’s particularly notable is that these outflows appear driven by long term holders and institutional buyers not short term speculators. These groups are moving BTC into self custody indicating confidence in future upside.
What makes this trend even more surprising is its timing. Typically when prices drop investors send Bitcoin to exchanges to sell or hedge. But this time Bitcoin is leaving exchanges during a correction suggesting accumulation rather than fear driven selling.
In the short term volatility may continue as traders react to price swings. However the structural trend points toward a potential supply squeeze forming beneath the surface. With liquid BTC at historic lows any strong demand returning to the market could trigger an aggressive upside move.
Exchange reserves are falling and quietly making the market more bullish.
#BTC #BinanceBlockchainWeek #WriteToEarnUpgrade #BinanceAlphaAlert
