The post Bitcoin Supply on Exchanges Hits Astonishing 7-Year Low appeared on BitcoinEthereumNews.com.

Crypto market watchers are buzzing about a significant on-chain metric: the Bitcoin supply on exchanges has plunged to levels not seen in seven years. This development, highlighted by data from analytics firm CryptoQuant, suggests a major shift in investor behavior and could have profound implications for the future price trajectory of the world’s leading cryptocurrency. What Does a 7-Year Low in Bitcoin Supply on Exchanges Mean? According to CryptoQuant data, the total amount of Bitcoin held on major centralized crypto exchanges dropped to a remarkable 7-year low of 2.488 million BTC on April 25th. While the figure has slightly rebounded to 2.492 million BTC since then, it remains near this historic trough. But why is this specific number causing such a stir? Think of centralized exchanges like temporary holding bays or trading floors for cryptocurrencies. When a large amount of Bitcoin sits on these platforms, it’s often seen as readily available supply for selling. Conversely, when the supply decreases significantly, it implies that holders are moving their BTC off exchanges. This action is typically interpreted in a few key ways: Long-Term Holding (HODLing): Investors are moving their Bitcoin to personal wallets (cold storage or hardware wallets) with the intention of holding it for the long term, rather than keeping it on an exchange for immediate trading or selling. Increased Self-Custody: Growing awareness of the risks associated with keeping funds on exchanges (like hacks, platform insolvency, or regulatory actions) encourages users to take control of their private keys. Reduced Selling Pressure: Less Bitcoin available on exchanges generally means less supply readily available to meet selling orders, which can reduce downward price pressure. Anticipation of Price Rise: The act of moving BTC off exchanges is often a vote of confidence, suggesting holders expect the price to increase in the future and want…

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Filed under: News - @ April 29, 2025 3:25 am