- Bitcoin broke a new all-time high above $125,700 before retracing slightly.
- Exchange balances dropped to their lowest in six to seven years, showing strong long-term conviction.
- Analysts warn of potential liquidity shortages as coins rapidly leave exchanges.
What’s more telling than price is where the coins are sitting. According to Glassnode, the total balance of Bitcoin on centralized exchanges has dropped to just 2.83 million BTC, the lowest since mid-2019. CryptoQuant’s data came in even leaner, showing 2.45 million BTC—marking a seven-year low. In the past two weeks alone, over 114,000 BTC—roughly $14 billion—has left exchanges. This steady outflow suggests investors are locking their coins into self-custody or institutional vaults, signaling strong conviction that these holdings are not for quick flipping.
Exchanges Feeling the Squeeze
Some market voices hint at something more dramatic: liquidity shortages. VanEck’s Matthew Sigel even quipped over the weekend that exchanges might “run out of Bitcoin” as early as Monday morning. Echoing that, investor Mike Alfred shared a call with a key OTC desk operator, who claimed they could be completely tapped out of supply within hours of futures opening unless the price lifts to between $126,000 and $129,000. If true, this puts traders in a curious position—chasing a rally with fewer sellers around.
Long-Term Outlook
When coins shift away from exchanges, it usually paints a picture of patient accumulation rather than speculative churn. With reserves at multi-year lows and prices pressing against fresh highs, the setup looks increasingly tight. If demand keeps rising into an environment of shrinking liquid supply, the path of least resistance might just be higher. Still, as always in crypto, the market has its way of surprising even the most seasoned watchers.
