Just hours ago, Bitcoin reached a new all-time high of $125,708, setting a record before stabilizing slightly above $122,000. This development opens up questions about what is driving this surge, with many wondering if the peak can climb even higher. What do the data from exchanges reveal about these shifts in the market?
Decreasing Bitcoin Supply in Exchanges
The amount of BTC held on centralized exchanges is dropping quickly. As both cryptocurrency reserve firms and ETFs soak up supply, investors are withdrawing their assets into cold storage to meet their long-term goals. The decline in BTC available for sale on exchanges is creating scarcity, pushing prices upward.
In the past two weeks, $14 billion worth of assets have been withdrawn from exchanges, bringing the BTC balance to its lowest in six years. This trend signifies a shift that surpasses previous bull markets. Despite substantial BTC mined over the past six years, long-term holdings in nearly 100 companies have already surpassed one million BTC. Factoring in ETFs and other factors, this number nears four million BTC.
According to Glassnode, exchange-held BTC stands at 2.83 million, the lowest in six years. The majority, owned by U.S.-based entities, holds a reserve that could easily outstrip exchange liquidity by a factor of 2.8. Unlike past cycles, this is a phase where institutional investors are absorbing the supply beyond the buyers’ liquidity on the exchanges.
CryptoQuant’s report indicates that exchanges now hold 2.445 million BTC—another notable dip marking a 7.5-year low.
The Crypto Bull Run
As BTC races toward new records, Nate Geraci made a compelling observation. He remarked, “BTC is hitting record levels, yet many people still don’t know what Bitcoin is,” emphasizing its enormous growth potential. This sentiment rings true worldwide, as few are aware of Bitcoin compared to gold and silver, yet BTC continues to normalize six-figure values.
Analyst “Rekt Capital” suggested that if $126,000 breaks solidly—meaning a strong buyer volume emerges above it—new highs could rapidly materialize.
Matthew Sigel from VanEck highlighted potential supply issues, speculating that major buyers on Monday might struggle to find sufficient BTC. Investor and trader Mike Alfred relayed a conversation with a leading OTC desk operator, who noted, “If the price doesn’t rise to $126,000‑$129,000, all our BTC will be gone two hours after futures open tomorrow. This is getting out of hand.”
This development is pivotal for other cryptocurrencies as well. Once BTC satiates liquidity demands, attention is likely to shift to altcoins.