Over 650,000 BTC exchanges in 8 months, signaling growing long-term holder confidence and intensifying supply scarcity.
Bitcoin surged from $25K to over $100K as reserves dropped to 2.4M, marking the lowest exchange supply since 2018.
Ethereum broke out of an ascending triangle, hit $3,400, and now retests key $2,300 support amid strong momentum signals.
According to Luke Mikic, Bitcoin exchange reserves have plunged to historic lows, intensifying supply shock amid soaring institutional demand. Over the past eight months, more than 650,000 BTC have left centralized exchanges. Consequently, Bitcoin’s supply is tightening, pressuring price action upward as long-term holders remove coins from circulation. Price currently hovers near $106,600, up sharply from sub-$20,000 levels in July 2022.
Source: Luke Mikic
Besides, Bitcoin’s price action reflects mounting momentum. It climbed steadily through 2023, ranging from $25,000 to $45,000, then rallied above $70,000 in early 2024. By the end of 2024, it smashed through $100,000, entering uncharted territory. Meanwhile, exchange reserves stayed relatively flat until late 2024. That changed rapidly as reserves dropped from 3.4 million BTC to just 2.4 million, the lowest since 2018.
Institutional Accumulation Drives Scarcity
The highest drop in reserves—about 1 million BTC—coincided with a sharp rally beyond $70,000. This period is accelerating institutional entry, with large public firms acquiring BTC for long-term storage. The outflows created a supply squeeze, reducing sell-side liquidity across exchanges. Lower reserves often reduce selling pressure and imply bullish sentiment among holders.
Moreover, the market dynamic suggests further upside potential. Bitcoin’s inverse correlation between price and exchange reserves reflects hodler conviction. Additionally, long-term investors favor self-custody strategies, removing BTC from centralized platforms. Hence, this trend may signal sustained bullish pressure going forward.
Ethereum Retests Key Support After Breakout
Meanwhile, Ethereum (ETH) shows bullish strength amid an ascending triangle pattern formed between March and June. Price action consolidated between $1,300 and $2,800, creating a technical base. A breakout in late June sent ETH soaring toward $3,400 before recent retracements.
Source: Crypto GEMs
However, the price has now pulled back to $2,485.30, with key support zones between $2,200 and $2,300. Volume during the breakout and corresshows active trader engagement. Additionally, momentum oscillators show two bullish crossovers in April and June, marking strong buying momentum.
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