Bitcoin’s market structure is showing historic tightening, with on-chain data revealing a massive outflow of coins from exchanges. According to insights, Bitcoin reserves across all exchanges have collapsed to just 2.4 million BTC, the lowest level in history.
Analyst data suggests coins are being withdrawn at an unprecedented pace, a classic signal of long-term accumulation. Historically, such events have preceded major price rallies, as reduced exchange supply creates conditions for sharp upward moves once demand surges.
Institutional Capital Inflows and Market Performance
At the same time, 10x Research reports that institutional capital continues to pour into the market. Bitcoin gained +3.9% over the past week, buoyed by $446 million in ETF inflows after softer U.S. inflation data reignited risk appetite.
#Bitcoin (BTC-USD is above the 7-day moving average -> bullish, but is below the 30 day moving average -> bearish, with 1 week change of +3.9%) after a softer-than expected U.S. CPI report signaled cooling inflation, reigniting investor risk appetite and boosting ETF inflows to… pic.twitter.com/Upn3S4mexa
— 10x Research (@10x_Research) October 26, 2025
BTC currently trades near $111,000, holding above its 7-day moving average but slightly below the 30-day trendline, a mixed but promising setup that reflects a consolidation phase before potential breakout continuation.
Institutional inflows combined with shrinking supply have strengthened Bitcoin’s long-term outlook.
Market Dynamics and Future Outlook
Analysts point out that despite mild profit-taking from long-term holders, structural demand remains resilient, especially with renewed optimism surrounding Federal Reserve rate cuts and the growing narrative of Bitcoin as a hedge against monetary debasement.
With exchange reserves nearing depletion and ETF demand rising, the market appears to be setting the stage for the next leg higher. As one trader noted, “When supply dries up, price doesn’t stay low for long.”