Bitcoin Experiences the Largest Annual Exchange Decline: Over 400,000 Coins Withdrawn

Bitcoin's supply on exchanges has seen a significant decrease, catching the attention of traders. According to Santiment, over 403,000 BTC have been withdrawn from exchanges since December 7, 2024, representing approximately 2% of Bitcoin’s total supply. This shift is notable when compared to an on-exchange balance of around 2.11 million BTC in late November, suggesting there are fewer coins available for quick sale.

Key Takeaways

Over 403,000 BTC have been withdrawn from exchanges since December 7, 2024.
This represents approximately 2% of the total Bitcoin supply, indicating reduced immediate selling liquidity.
Institutional investors are increasingly accumulating Bitcoin through ETFs and company holdings.
Current trading dynamics show volatility, with Bitcoin priced around $90,178 and year-to-date gains of 11%.
Market watchers are anticipating the outcomes of Federal Reserve meetings that could affect cryptocurrency volatility.

Bitcoin

Decline in Exchange Balances

Santiment has highlighted that reduced balances on exchanges historically correlate with fewer abrupt sell-offs, a trend that many market observers find reassuring. The reasoning is simple: when a substantial proportion of Bitcoin's supply is held outside of exchanges, there is less available stock to respond to selling pressure.

📊 With Bitcoin's market price around $90,000, the leading cryptocurrency continues to see its supply being pulled away from exchanges. Over the past year, there has been: 📉 A total reduction of 403,200 $BTC moving off exchanges
📉 A net change of -2.09% of $BTC's total supply leaving... pic.twitter.com/Y0JTC880Np — Santiment (@santimentfeed) December 8, 2025

Bitcoin Statistics

Institutional Involvement Grows

Reports from BitcoinTresuries.Net and additional sources indicate that the outflows from exchanges are not solely being moved to private cold wallets. Exchange withdrawals are also being directed toward ETFs and public companies. BitBo notes that ETFs are holding over 1.5 million BTC, while public firms possess over 1 million BTC, collectively representing nearly 11% of the entire Bitcoin supply.

Analysts believe that institutional investment vehicles have quietly accumulated a significant number of coins, altering the dynamics of Bitcoin ownership and availability for sale. This is more than just numerical accounting; coins stored in institutional or self-custodied vaults are less likely to be sold impulsively, leading to a tighter available supply. Furthermore, as more coins exit exchanges, sharper price movements may occur during surges in demand, as the pool of sellable coins becomes limited. Some of these effects are already visible in market price patterns, with more potential shifts anticipated if buying interest increases.

Bitcoin Trading Chart

Bitcoin is currently priced at $90,178, having experienced a slight increase of 0.28%. Year-to-date, it has shown gains of 11%. The market exhibited volatility today, swinging from a low of $89,540 to a high of $92,290, indicating active trading dynamics around the current price levels.

Market analysts are closely monitoring an upcoming Federal Reserve meeting, as the results are projected to influence short-term volatility. Changes in interest rates typically affect broader markets, and cryptocurrencies are no exception.

Overall, the trend of Bitcoin moving off exchanges appears to create a bullish environment, minimizing immediate selling liquidity. However, this increased scarcity might also render prices more sensitive to fluctuations in demand, leading to potential price swings. Observers will be watching whether ETFs and public firms continue their purchasing trends or begin to slow down.

Featured image from Unsplash, chart from TradingView