Bitcoin Supply Dries Up on Exchanges as $110,000 Rally Builds

Bitcoin’s rally toward $110,000 may be grabbing headlines, but what’s happening behind the scenes is even more telling. According to new data from CryptoQuant, investors are quietly withdrawing massive amounts of BTC from exchanges—signaling growing conviction that BTC isn’t just an asset, but a long-term store of value.

Over Half a Million BTC Vanishes from Exchanges

In July 2024, centralized exchanges held about 1.55 million BTC. Fast forward to today, and that number has dropped to just 1.01 million—a decline of 550,000 BTC in a single year.

This isn’t typical short-term repositioning. It reflects a clear shift in behavior: holders aren’t looking to sell—they’re securing their assets off-platform, away from the trading spotlight. Long-term wallets and cold storage solutions are seeing the bulk of that action.

Price Climbs As Supply Shrinks

This ongoing supply drain has been mirrored by Bitcoin’s rising price. The market’s reaction aligns with basic economics:

Less supply on exchanges = fewer coins available to sell More demand from new buyers = increased pressure on price Result: A powerful price surge

CryptoQuant analysts say this dynamic shows Bitcoin evolving from a speculative play into a macroeconomic hedge, what many now refer to as “digital gold.”

The Quiet Phase Before a Big Wave?

So, what’s next? If current trends continue, the market could see further upside. Notably, whales and large institutional players have yet to fully re-enter. This ongoing, quiet accumulation may be laying the foundation for an even larger breakout.

For long-term investors, the message is clear: BTC flowing out of exchanges is not a red flag—it’s a bullish signal. As supply tightens and conviction builds, the incentive to HODL has never been stronger.

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