Bitcoin price surged 13.6% since June 22 while supply on exchanges dropped by 315,830 BTC in just four months.
Long-term holders continue withdrawing coins into self-custody, contributing to reduced selling pressure and supply-side stability across the market.
Since July 2020, exchanges have lost 1.88 million BTC in total, reflecting a 61% decrease in available trading supply.
Bitcoin has reached a new all-time high of $113,923, continuing its strong bullish momentum since the June 22 local bottom.
Exchange Supply Shrinks as Prices Climb
Santiment reported via X that Bitcoin has risen by 13.6% since June 22. Despite this sharp price appreciation, holders appear to be showing no urgency to return coins to exchanges for profit-taking.
Instead, a noticeable trend shows continued withdrawals from known exchange addresses. Over the past four months, a net 315,830 BTC has moved off exchanges. This marks a 21% decrease in exchange-held supply during that period.
Dating further back to July 2020, the exchange balance of Bitcoin has seen an even sharper drop. Around 1.88 million BTC have exited exchanges over the past five years. This figure represents a 61% reduction in supply available for immediate trade on centralized platforms.
Long-Term Holders Prioritize Self-Custody
The sustained movement of Bitcoin into private wallets suggests confidence among long-term holders. Rather than preparing to sell, many appear committed to keeping their assets in cold storage or self-custody solutions.
Santiment’s data suggests that this behavior may be contributing to Bitcoin’s stable upward trend. With fewer coins on exchanges, the potential for sharp sell-offs appears reduced. Traders moving assets into private holdings also supports the notion of continued accumulation and long-term commitment to the asset.
Moreover, this withdrawal activity has been consistent, not just triggered by price surges. That consistency indicates that many market participants have shifted focus away from short-term speculation and toward long-term preservation.
Market Sentiment Supports Long-Term Strength
According to Santiment’s post, the lack of deposit behavior during major rallies is becoming more common. Fewer traders are reacting emotionally to upward price movement, opting instead to maintain control over their holdings.
This shift in behavior contributes to reduced volatility, at least on the supply side. With supply shrinking on exchanges, buying pressure may be driving prices higher with less resistance.
Overall, the data suggests a Bitcoin market increasingly controlled by patient, long-term investors rather than reactive short-term traders.
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