Bitcoin Exchange Supply Breaks Equilibrium: Whales Scoop Up 240,000 BTC
On-chain data shows that Bitcoin spot exchange stocks, which have been stuck in consolidation, are finally starting to follow a new trajectory.
Bitcoin spot exchange supply has dropped sharply recently
in a new postal On X, analyst Willy Woo discusses Bitcoin trends Spot exchange inventory. This metric tracks the total amount of cryptocurrency in wallets across all centralized spot exchanges.
This portion of the exchange supply refers to the actual tokens of the asset that exist on the blockchain. As with derivatives products, exchange supply that does not actually involve users owning BTC is known as “Paper Bitcoin“.
When spot exchange inventories rise, it means investors deposit a net amount of tokens into wallets associated with these platforms. Since one of the main reasons why holders move Bitcoin to exchanges is for sale-related purposes, this trend could have a bearish impact on the asset’s price.
On the other hand, a decrease in this indicator means that foreign exchange outflows exceed foreign exchange inflows. Investors often self-custody their tokens when they plan to hold them for the long term, so this trend can be positive for cryptocurrencies.
Now, the chart below shows how Bitcoin spot exchange inventory has trended over the past few years:
As shown in the chart above, Bitcoin spot exchange inventory fell significantly around the time of this transaction. FTX crashes Back in November 2022. This suggests that massive token flows occurred on these platforms as the asset’s bear market bottomed out.
Following this plunge, the indicator began a consolidation phase that would last throughout 2023 and much of 2024. This trend finally broke out in the final months of 2024, when the indicator saw a sharp decline.
These outflows come as Bitcoin explores new all-time highs, meaning investor accumulation may have played a role in Bitcoin’s rise. A total of 240,000 BTC was withdrawn from exchange-related wallets during this crash.
Woo noted that Microstrategy’s purchases during this period totaled approximately 192,000 BTC, meaning there were other whales in the market taking away significant amounts of funds from the exchange.
So far, the downward trend in spot exchange inventories has shown no signs of bottoming out, as outflows continue into 2025. If investors do continue to accumulate in the near future as well, Bitcoin could benefit from further bullish momentum.
bitcoin price
Bitcoin has continued its sharp rally over the past 24 hours, with its price surpassing the $101,700 mark.
