Since 2020, more than 3.77 million Bitcoins have left exchanges, indicating a move to long-term holding.
The decrease in exchange supply indicates a decreased selling pressure, which could precondition the bullish tendencies in the market.
The increase in self-custody is indicative of users becoming more interested in retaining control over their assets personally and having confidence in the future of Bitcoin.
Ever since the start of 2020, a drastic shift has been witnessed in where Bitcoins are being stored, which points towards growing confidence in its future prospects. On the basis of blockchain data monitored up to June 2025, approximately 3.77 million Bitcoins equivalent to approximately $219 billion have been withdrawn from centralized exchanges.
The data is reflecting that a vast amount of Bitcoin owners are choosing self-custody over selling, therefore, decreasing the amount of supply on exchanges and setting up a possible bullish scenario.
Decreasing Exchange Balances Indicate Long-Term Holding
The exchange flux balance figure reveals there has been a persistent and strong outflow of Bitcoin from exchanges since February 2020.The decreasing green and increasing red spaces in the chart demonstrate the reversal from accumulation in the exchanges towards large withdrawals.
https://twitter.com/MasterCryptoHq/status/1932674029632303365
The trend tends to point towards investors' desire to hold on to their funds rather than trading them actively, suggesting greater confidence in Bitcoin's long-term value. Today's decline in exchange-held Bitcoin also means less coins on offer for sale, which can ease selling pressure. This condition often supports upward price movements, as reduced supply combined with steady or rising demand generally pushes prices higher.
Market Price Movement and Technical Levels
As of the most recent update, Bitcoin is trading at $109,498, marking a 0.3% price increase. The current support level stands at $108,633, while resistance is noted at $110,237. These price movements remain within a narrow 24-hour range, suggesting relatively stable short-term market behavior amid the ongoing long-term accumulation trend.
Historical patterns show that similar periods of sustained outflows from exchanges have preceded major bullish phases. However, analysts caution that while reduced exchange balances can be interpreted as a positive indicator, other factors such as macroeconomic trends, regulatory actions, and global liquidity must also be considered in evaluating Bitcoin’s future performance.
Shift to Self-Custody Reflects Broader Crypto Behavior
The self-custody movement also tracks broader tendencies within the crypto ecosystem. Over the past few years, utilization of individual wallets, cold storage providers, and decentralized finance systems has surged. They provide users more authority over their holdings, outside of central intermediaries, and appeal to users concerned with exchange solvency or regulatory meddling.
Further, the decline in exchange balances does not equate to less activity in the market. The use of peer-to-peer trading, over-the-counter markets and decentralized exchanges have also increased in stature, representing an alternative means of transacting that does not contribute to the metrics of centralized exchanges.
Outlook Remains Cautiously Optimistic
Although the decreasing amount of Bitcoin on exchanges is an undeniable indication of investor conviction and a long-term holding pattern, market participants are sensitive to externalities. However the numbers are painting a picture of guarded optimism within the market and the stage is set perhaps, of future price power should the present trends continue.
