400K Bitcoin Have Left Exchanges Since Last Year: Supply Squeeze Accelerates

Source: CryptoNewsNet Original Title: 400K Bitcoin have peeled off exchanges since last year: Santiment Original Link: Bitcoin is experiencing a significant outflow from exchanges, signaling a potential shift in market dynamics. Over 403,000 BTC have moved off exchanges since December 7, 2024, representing roughly 2% of the total supply.

Users typically move Bitcoin away from exchanges into cold storage wallets, which makes it harder to sell and could signal long-term holding plans. Market analysts suggest this trend is positive for the market:

“In general, this is a positive long-term sign. The less coins exist on exchanges, the less likely we’ve historically seen a major sell-off that causes downside pressure for an asset’s price.”

As Bitcoin’s market value hovers around $90K, the cryptocurrency’s top market cap continues to see its supply moving away from exchanges.

A year ago, there were around 1.8 million Bitcoin on exchanges.

Bitcoin Shifting Into ETFs

While much of the Bitcoin leaving exchanges is likely headed to hodler wallets, exchange-traded funds (ETF) could also be absorbing these coins. According to recent data, ETFs and public companies now hold more Bitcoin than all exchanges combined, after years of steady accumulation.

Crypto industry observers note that institutional ownership has entered a new phase:

“Institutional ownership has quietly crossed into a new phase: less liquid supply, more long-term holders, stronger price reflexivity, a market driven by regulated vehicles, not trading platforms. This shift is bigger than people think. Bitcoin isn’t moving to exchanges anymore. It’s moving off them straight into institutions that don’t sell easily. The supply squeeze is building in real time.”

ETFs and Companies Hold More Bitcoin Than Exchanges

Market data shows Bitcoin held on exchanges sitting at around 2.11 million as of late November, when Bitcoin was trading around $84,600 during a market correction.

Bitcoin held on exchanges has been steadily falling over the last year.

ETFs now hold over 1.5 million Bitcoin, while public companies hold over one million, representing nearly 11% of the total supply combined. This institutional accumulation represents a fundamental shift in Bitcoin’s ownership structure and market dynamics.