Key Takeaways
Bitcoin (BTC) traded near $76,000 on Tuesday as the supply of coins on exchanges dwindled to the lowest level in over seven years, a sign of persistent accumulation by large investors that could set the stage for a price move toward $80,000.
"The reduction in exchange reserves is a bullish signal, though not a guarantee of price spikes," said Amr Taha, a crypto analyst at CryptoQuant. "A broad distribution phase would typically reflect synchronized inflows across multiple exchanges, which is not evident in the current data."
Data shows the total balance of Bitcoin held on exchanges has fallen to approximately 2.21 million BTC, the lowest level seen since December 2017. This coincides with a sharp increase in buying from the largest investors. Wallets classified as “whales,” holding between 100 and 10,000 BTC, added roughly 45,000 BTC last week alone — the largest single-week accumulation from the cohort since July 2025, according to Cex.IO data. The aggressive buying suggests conviction-driven positioning rather than opportunistic dip-buying.
The supply squeeze from shrinking exchange reserves comes as institutional demand accelerates. Spot Bitcoin ETFs recorded $1.29 billion in collective net inflows in recent sessions, while corporate treasuries continue to add exposure. Strategy added 34,164 BTC in the week ending April 19, paying an average of $74,395 per coin. Separately, Morgan Stanley disclosed its Bitcoin holdings have crossed the $100 million threshold, a milestone signaling growing appetite from traditional Wall Street firms.
A closer look at on-chain flows reveals a significant drop in selling pressure. The seven-day average of Bitcoin inflows to Binance from mid-size wallets—often associated with active traders—has fallen to a range of 3,000 to 4,000 BTC, a multi-year low, per CryptoQuant. While Coinbase saw a spike in similar inflows to 8,500 BTC on April 19, flows to other exchanges remained muted, suggesting the activity was not part of a coordinated, market-wide sell-off.
The broader trend shows a strong withdrawal phase. Bitcoin’s 30-day net flow, which turned negative in March at -300,000 BTC, stood near -98,000 BTC as of April 21, according to research from Axel Adler Jr. This indicates that more coins are moving into cold storage than are being deposited onto exchanges for potential sale. Exchange reserves have now declined for seven consecutive weeks, falling by over 105,000 BTC since early March.
The tightening supply dynamics are being met with increasing acknowledgment from U.S. officials. Federal Reserve Chair nominee Kevin Warsh told Congress this week that digital assets are “already part of the fabric” of U.S. financial services. In separate testimony, Admiral Samuel Paparo of U.S. Indo-Pacific Command described Bitcoin as a “valuable computer science tool as power projection,” highlighting its strategic cryptographic architecture.
With a dwindling available supply on exchanges facing off against persistent institutional and whale accumulation, the market is positioned for increased volatility. The next key resistance level for Bitcoin is widely seen at the $80,000 mark.
This article is for informational purposes only and does not constitute investment advice.
