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Bitcoin Supply on Exchanges Drops to 7-Year Low as Store of Value Sentiments Escalate
March 27, 2025
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Sentiments among Bitcoin holders have switched to long-term accumulation, evident in the rapidly declining balance on centralized exchanges. Data from Santiment highlighted this paradigm shift among Bitcoin holders, who are viewing the asset through the lens of its long-term potential. The Wednesday analysis indicates a rapidly declining Bitcoin reserve on centralized exchanges as holders export the asset to self-custody wallets.
Per Santiment, the Bitcoin supply on exchanges has dropped to a 7-year low of a mere 7.53%. The last time the market witnessed this rate was on February 20, 2018. This suggests that investors have grown increasingly comfortable holding Bitcoin for the long term despite short-term volatility.
Bitcoin Supply Reaches 7-Year Low on Exchanges | Santiment
Holders Turning to Diamond Hands
Typically, moving an asset off exchanges suggests that the holder does not intend to sell it in the near term. Holders of the largest cryptocurrency by market cap have taken this approach, which has extensively reduced the amount of the asset on trading platforms. Notably, Santiment stated that this disposition reduces Bitcoin’s selling pressure as intents change among holders. For context, a reduction in the exchange’s Bitcoin supply means fewer tokens are available for spot selling, depleting the impact of volatile market conditions on prices.
Additionally, this reflects an increasing interest in Bitcoin among institutional and long-term custodian services. A continued relocation from exchanges to self-custody wallets and institute-backed storage facilities suggests institutional presence, a catalyst for growing demand, and a consequent price appreciation. Santiment highlighted that Bitcoin’s exchange supply depletion suggests a shift from Bitcoin’s categorization as a speculative asset to a store of value. Interestingly, this sentiment leads to market stability, maturity, and bullish conditions.
Accumulation Pattern Emerges
Analyst Helmut Muller also dictated an accumulation pattern accompanying the exchange withdrawal. He called attention to seller exhaustion among bears, aligning with an earlier The Crypto Basic report highlighting dwindling selling pressure. He noted that proof of this Bitcoin accumulation pattern reflected in the market reaction following yesterday’s short trigger from Donald Trump’s tariff announcement. The asset handled the development more maturely than it used to, indicating that sellers are losing their grip on the proceedings.
As a result, Muller insisted that Bitcoin’s path of least resistance is upward. Notably, analysis from Ali Martinez has identified the levels between the $88,000 and $91,000 range as a significant resistance in the premier asset’s northward trajectory.
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