Bitcoin's percentage of total supply held on exchanges has fallen below 11% for the first time since March 2018, reaching levels not seen in nearly seven years, according to data from Glassnode. This sharp decline signifies a broader trend of accumulation among long-term holders and a potential shift in how Bitcoin is stored and traded.
The peak of Bitcoin's exchange supply occurred in March 2020, when over 17.2% of BTC was held on exchanges. Since then, approximately 1.26 million BTC has been withdrawn from these platforms, marking a significant reduction over recent months.
A key contributor to this trend is heightened institutional participation, with large financial firms like BlackRock and Fidelity opting for private custody solutions instead of traditional exchanges. Coinbase, for instance, reported over $212 billion in assets under custody during the first quarter of 2025, significantly influenced by inflows from new institutional investors.
Trust in centralized platforms has also taken a hit since the FTX collapse in late 2022, leading more investors to withdraw their assets from exchanges. The net transfer volume has indicated prolonged outflows, with weekly withdrawals frequently surpassing 10,000 BTC, totaling over 200,000 BTC from late 2022 through mid-2023.
Investors are increasingly favoring cold storage options, demonstrating a reluctance to trade on exchanges during this period of uncertainty. Furthermore, many public companies now hold over 3% of the total Bitcoin supply, signifying a growing trend of institutional accumulation.
The peak of Bitcoin's exchange supply occurred in March 2020, when over 17.2% of BTC was held on exchanges. Since then, approximately 1.26 million BTC has been withdrawn from these platforms, marking a significant reduction over recent months.
A key contributor to this trend is heightened institutional participation, with large financial firms like BlackRock and Fidelity opting for private custody solutions instead of traditional exchanges. Coinbase, for instance, reported over $212 billion in assets under custody during the first quarter of 2025, significantly influenced by inflows from new institutional investors.
Trust in centralized platforms has also taken a hit since the FTX collapse in late 2022, leading more investors to withdraw their assets from exchanges. The net transfer volume has indicated prolonged outflows, with weekly withdrawals frequently surpassing 10,000 BTC, totaling over 200,000 BTC from late 2022 through mid-2023.
Investors are increasingly favoring cold storage options, demonstrating a reluctance to trade on exchanges during this period of uncertainty. Furthermore, many public companies now hold over 3% of the total Bitcoin supply, signifying a growing trend of institutional accumulation.
