Bitcoin supply on exchanges has dropped to an unexpected 7-year low which might fuel a run to new all-time highs. This comes as investors consider whether to buy BTC and major altcoins or not.
The global digital assets market cap has managed to grow marginally over the past week and remained under the crucial $3 trillion mark. It has been hovering around the $2.8 trillion zone over the last two days, suggesting that investors are waiting for some green signals.
Bitcoin’s scarcity hits 2018 levels
As per the data shared by Santiment, Bitcoin’s ratio of supply on exchanges dropped to as low as 7.53%. It is the lowest recorded since February 20, 2018. That level is a 7-year-old milestone, suggesting that BTC holders are comfortable ‘hodling’ their assets for the long-term. This trend has remained constant despite short-term price volatility and fluctuations.Â
More Bitcoin laying down on self-custody would lead to much lower immediate sell pressure, which could be bullish for the market. However, coins held in wallets indicate that holders have less immediate intent to trade or liquidate. This theory reduces the available supply for spot selling which directly acts as a buffer against sudden price plunges.
💸 Bitcoin's ratio of supply on exchanges has officially dropped to as low as 7.53%, the lowest since February 20, 2018. The 7-year milestone reflects a continued trend of investors of crypto's top asset feeling comfortable 'hodling' for the long-term, regardless of short-term… pic.twitter.com/m7d6Yon5HR
— Santiment (@santimentfeed) March 26, 2025
Bitcoin price has shown higher volatility over the last month. BTC was trading above $94K at the beginning of the month and dropped straight to the $82K zone in a day or so just to regain the $92K level. Since then, it has been dragged to the $77K level and risen against all the selling pressure to again hit the $87K mark.
The biggest crypto price is up by just 2% over the past 7 days, but it is marginally down over the last 30 days. Like other major assets, BTC has been swimming in choppy tariff tides. Bitcoin is trading at an average price of $87,304 as of press time. Its 24-hour trading volume is down by 10% to stand at $25.5 billion.
BTC exchange balances plummet
Data provided by Coinglass shows that Bitcoin balance on Coinbase Pro has dropped by 109 in the last 24 hours and 628 over the past 7 days. BTC balance on Binance is similarly down by 1,294 in 24 hours and 13,362 in 7 days. However, Bitfinex has managed to add 286.02 new Bitcoins over the last day even though its balance is down by 19,379 over the past week.
Lower exchange balances have usually coincided with bullish conditions. The dropping exchange supply signals growing interest from institutions with other long-term custodial solutions. Bitcoin ETFs have also posted nine days of BTC inflows. March 24 saw a total net inflow of $89.57 million in US spot Bitcoin ETFs.
Meanwhile, Ethereum ETFs recorded a total net outflow of $5.89 million. None of the nine ETFs posted any net inflow. Ether price is down by almost 3% in the last 24 hours while it is down by 40% year to date (YTD).
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