Bitcoin exchange supply has dropped to a near record low, which may trigger a price rise.

According to statistics from a certain data platform, as of the end of April 2025, the number of Bitcoins held by centralized exchanges has dropped to the lowest level since 2019, with only about 2.5 million remaining, a decrease of 500,000 from the end of 2024.

This phenomenon is widely interpreted as a signal that investors are transferring Bitcoin from exchange platforms to personal wallets. Such behavior is often associated with long-term holding strategies, as withdrawing assets from exchange platforms can reduce the potential selling risks arising from operational convenience.

Since the beginning of 2023, the trend of withdrawing Bitcoin from exchanges has been continuously developing. At that time, the Bitcoin reserves on exchanges were approximately 3.2 million coins. Over the past year, this trend has accelerated with the participation of major institutional investors.

Institutional demand for Bitcoin may become a key factor driving supply shortages. For example, some large enterprises have recently significantly increased their holdings of Bitcoin, with one company alone purchasing $253 million worth of Bitcoin, directly exacerbating the outflow of assets from exchanges.

A senior Bitcoin expert stated: "We have never seen a situation like this before. A global Bitcoin supply shortage has never occurred. This is a significant bullish signal."

Another well-known cryptocurrency trader pointed out: "The supply of Bitcoin on exchange platforms has fallen to its lowest level since the third quarter of 2018. As of now, there are only 2.5 million Bitcoins left on exchanges, a decrease of 500,000 compared to the fourth quarter of 2024. A few days ago, some institutions mentioned that other institutions are continuously buying and withdrawing Bitcoins from exchanges. The supply combined with demand will lead to a price explosion."

According to a recent survey by a certain exchange platform, more than three-quarters of institutional investors plan to increase their allocation to digital assets by 2025, with many institutions already using Bitcoin for portfolio diversification and as a hedge against macroeconomic uncertainty.

In addition, some listed companies are also actively accumulating Bitcoin. Since November 2024, these companies have withdrawn over 425,000 Bitcoins from the exchange, with a total holding close to 350,000 coins.

The reduction in the supply of Bitcoin on the trading platform has several effects on the market, including a decrease in selling pressure. As the number of Bitcoins available for immediate sale decreases, the risk of large-scale sell-offs diminishes, which helps stabilize or even push up prices.

If demand continues to grow while supply remains constrained, the market may face a supply shortage, which historically has often led to a sharp rise in prices.

An on-chain analyst commented: "The fundamentals of Bitcoin have turned bullish, and the conditions for breaking the historical high have matured."

The shift towards self-custody and long-term holding reflects the maturation of the crypto asset market, where both retail and institutional investors increasingly view Bitcoin as a strategic asset rather than a speculative tool.

The decline in Bitcoin supply on the exchange platform is widely seen as a bullish signal, but it also means that a surge in demand could lead to increased price volatility. In the coming weeks, the market will verify whether this supply shortage will drive Bitcoin prices into a new pump, or whether market sentiment will change with the emergence of new macroeconomic data.