Bitcoin’s exchange supply has dropped to its lowest point, fueling speculation of heightened market volatility ahead.
According to data from CryptoQuant, the total amount of Bitcoin held on centralized exchanges has dropped to just under 2.5 million BTC as of late May 2025. This marks one of the lowest levels in recent years, signaling a potential shift in investor behavior.
The decline in exchange reserves has occurred alongside a powerful price rally. Bitcoin recently surged to a new all-time high, crossing the $111,500 mark. This inverse relationship—falling reserves coupled with rising prices—has caught the attention of analysts and traders alike.
CryptoQuant’s chart visualizes the divergence clearly: while the white line representing Bitcoin’s price trends upward, the blue line depicting exchange reserves continues its steady decline.
This trend suggests that more investors may be moving their assets off exchanges and into cold storage, possibly anticipating further price increases or reducing exposure to trading platforms. The diminishing supply on exchanges could also lead to increased volatility, as reduced liquidity may amplify price movements.
