Bitcoin Exchange Supply Hits Record Low, Fueling Price Speculation
Bitcoin’s supply on exchanges has reached its lowest point, sparking anticipation of increased market volatility. As of late May 2025, CryptoQuant data reveals that centralized exchanges hold just under 2.5 million BTC. This decline coincides with a robust price surge, pushing Bitcoin to a new all-time high above $111,500.
The relationship between exchange reserves adn prices is noteworthy. While Bitcoin’s exchange supply dwindles,its value climbs. This trend is visually represented on the CryptoQuant chart, where the price line ascends while the reserve line descends.
Historically, reduced Bitcoin supply on exchanges has led to price increases, especially during high demand. Analysts view this as a sign that the market may soon experience more pronounced price movements.
Institutional investors are significantly influencing the current market. Large holders,such as wallets with 1,000 to 10,000 BTC,are steadily accumulating and storing Bitcoin offline. Strategy, for instance, added 7,390 BTC in May, bringing its total to 576,230 BTC.
Spot bitcoin exchange-traded funds have attracted $5.23 billion in inflows over the past month,per SoSoValue data. Governments like the UAE and Pakistan are also increasing their bitcoin holdings.
Technically, Bitcoin is in a holding pattern. The relative strength index is neutral at 52, while the moving average convergence divergence shows slight bearishness. If Bitcoin can reclaim its short-term moving average of around $106,000, it may rally toward $110,000 or higher. Otherwise, a drop to $98,000 or $94,000 is possible.
