Bitcoin on-exchange balance hits lowest level since 2018

Bitcoin’s on-exchange balance has hit its six-year low since November 2018. According to Glassnode data, it dropped to 2.76 million, amounting to 13.7% of the circulating supply. 

The amount of Bitcoins on exchanges is at its lowest level since the crypto winter of November 2018. According to a Glassnode report, the total Bitcoin on centralized trading platforms hit 2.716 million. 

Bitcoin on exchange balance hits six-year low

Glassnode data revealed that Bitcoin’s on-exchange balance attained its all-time high in 2022, at 3.3 million. Reduced BTC on exchanges reportedly pressure buyers by reducing the amount of Bitcoin available for sale. 

*** JUST IN: Bitcoin on-exchange balance just hit the lowest level since November 2018!

Only 2.716 million BTC remain on exchanges according to data provided by @glassnode = 13.7% of circulating supply.

Signals an ongoing supply deficit on exchanges. 🔥 pic.twitter.com/IHqgRznDwP

— André Dragosch, PhD | Bitcoin & Macro ⚡ (@Andre_Dragosch) February 24, 2025

According to Gaah, a Cryptoquant analyst, the scenario indicates a potentially more volatile but resilient BTC market. He added that less selling pressure and a growing dominance of long-term holders could open up space for new price peaks.

Glassnode data revealed that BTC’s on-exchange balance increased from 1 million BTC in 2017 to 3 million in 2019. According to Coinmarketcap, the coin’s price during this period was $17,000. The data indicated that fluctuations in the BTC balance on exchanges were accompanied by a gradual growth in the coin’s price. 

The demand for BTC in the open market has led to a decline in the balance of exchanges. One notable source of the depletion is the spot BTC exchange-traded fund (ETF) craze. Since their emergence and consequent approval by the United States Securities and Exchange Commission (SEC), BTC institutional adoption has increased.

Business Journalist Eleanor Terrett revealed that ETF products have accumulated 1 million BTC units worth over $95 billion. Institutional investors globally reported purchasing Bitcoin ETFs shortly after their approval. Goldman Sachs and Morgan Stanley are among the investors.

The increased institutional demand aligns partially with the balance depletion on exchanges.

Analysts predict increased institutional adoption could lead to further supply crunch 

Standard Chartered predicted that BTC could reach $200,000 by the end of 2025. The projection is said to align with increased institutional inflows into Bitcoin ETFs, which could rally the asset’s price. 

SkyBridge Capital founder Anthony Scaramucci highlighted the establishment of a U.S. strategic Bitcoin reserve and other Trump pro-crypto policies, which could lead to increased demand for the asset. 

Bitwise CIO Matt Hougan expressed that BTC ETFs were one of the three sources of insatiable Bitcoin demand. He added that BTC’s price could surpass $200,000 due to increased institutional adoption. Hougan predicted that the cryptocurrency’s price could even reach $500,000 if the strategic reserve came to life. 

Bitwise’s head of research, Ryan Rasmussen, reported that the amount of BTC held by corporations doubled in 2024. He added that in the first quarter of 2024, the figure increased by 6% and reached $279,639. Rasmussen noted that in the second quarter, the figure increased by 15% by 13% in the third quarter.

The Bitwise official added that corporations held 590,649 BTC in the fourth quarter, a 63% increase. Rasmussen highlighted that Strategy(formerly Microstrategy) contributed the most to the increase. He said other companies, such as Metaplanet and Marathon Digital, also contributed to the feat.

MicroStrategy has announced period BTC acquisitions since January. The firm revealed it had acquired 10,107 BTC worth $1.1 billion at an average price of $105,596 per BTC. It added it had achieved its BTC yield of 2.90% year-to-date. The company revealed it held 471,107 BTC and planned to acquire more in the long term.

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