Bitcoin reserves on exchanges have dropped to their lowest levels since November 2018, with a significant decrease observed since November 2024. This reduction, totaling more than 425,000 BTC, is largely attributed to public companies acquiring the digital asset.
According to Fidelity Digital Assets, the current supply of Bitcoin on exchanges is approximately 2.6 million BTC, marking the lowest level in over six years. Publicly traded companies have been responsible for purchasing nearly 350,000 BTC, a trend that is expected to continue growing in the near future.
One of the primary drivers behind these acquisitions is Strategy, a firm co-founded by Michael Saylor. Since November 2024, Strategy has accumulated 285,980 BTC, making up a significant portion of the total Bitcoin bought by public companies. The latest purchase by Strategy, 6,556 BTC, was disclosed in April 2025. Additionally, companies outside the U.S. are also adopting similar strategies. Metaplanet, a company in Japan, holds 5,000 BTC and aims to double that number this year. In Hong Kong, HK Asia Holdings has announced plans to raise $8.35 million to increase its Bitcoin reserves.
The removal of Bitcoin from exchanges has had a noticeable effect on the market. Between April 19 and 23, 15,000 BTC left exchanges, coinciding with Bitcoin’s price rising above $93,000. This followed a previous period when Bitcoin inflows to exchanges surged by 15,000 BTC. These movements suggest that investors may be moving their Bitcoin off exchanges for long-term storage, rather than selling or trading it. This pattern of accumulating Bitcoin off exchanges is often seen as a sign of long-term investment.
Despite the increasing demand from institutional investors, overall market liquidity remains low. The demand for Bitcoin has decreased by 146,000 BTC over the past 30 days, although this is less than the 311,000 BTC decline seen in March 2024. Additionally, momentum from new buyers has slowed, with a drop of 642,000 BTC over the last month. Spot Bitcoin ETFs have also seen minimal activity in 2025, with net outflows of 10,000 BTC, compared to net purchases of 208,000 BTC by this time in 2024.
The decrease in Bitcoin on exchanges has contributed to a shift in market dynamics, with smaller retail players becoming more active. The Exchange Whale Ratio, a measure of large traders’ dominance, fell below 0.3 in April 2025, indicating that retail investors are having more influence on the market. Despite this, Bitcoin’s price remains volatile, and a sudden shift in market conditions could push Bitcoin past $98,000, though strong demand signals are necessary for sustained growth.
