Bitcoin supply on exchanges reaches lowest since 2018

The supply of Bitcoin held on centralized exchanges has reached its lowest point since 2019 according to data from CryptoQuant. As of late April 2025, only about 2.5 million BTC remain on exchanges, representing a drop of 500,000 coins since the end of 2024.

Bitcoin supply on exchanges shows shift toward self-custody

The decline in Bitcoin supply on exchange balances is widely interpreted as a sign that more investors are moving their BTC into private self-custodial wallets. This behavior is typically associated with long-term holding, or “HODLing,” as investors withdraw coins from platforms where they could be easily sold.

Removing Bitcoin from exchanges is a trend that has been building since early 2023, when reserves stood at around 3.2 million BTC. The trend has accelerated over the past year with the involvement of major institutional players.

Institutional demand could drive global supply crunch

Institutional demand could drive a Bitcoin supply crunch as major firms like Fidelity have made substantial Bitcoin purchases. Fidelity alone recently acquired $253 million worth of BTC, contributing to the outflow of coins from exchanges. Bitcoin veteran Dennis Porter enthused:

“We have never seen this before. We have never had a global Bitcoin supply crunch. Bullish.”

Renowned crypto trader Cas Abbe posted:

“Bitcoin exchange supply is now down to its lowest level since Q3 2018. As of today 2.5M $BTC are on exchanges, down 500K from Q4 2024. A few days ago, Fidelity mentioned that institutions are buying and withdrawing BTC from exchanges consistently.

Supply