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Bitcoin Hits Record $125K as Exchange Balances Drop to 6-Year Low

Bitcoin Hits Record High as Exchange Reserves Plummet to Six-Year Low, Sparking Supply Shortage Fears

  • Bitcoin reached a new record high of over $125,700 on Coinbase.
  • The amount of Bitcoin held on centralized exchanges dropped to the lowest levels since 2019.
  • More than 114,000 BTC, valued at over $14 billion, left exchanges in the past two weeks, according to Glassnode.
  • Industry leaders reported that some exchanges and over-the-counter (OTC) desks may soon run out of Bitcoin for sale if current demand continues.
  • Moves of Bitcoin into self-custody suggest investors plan to hold for the long-term rather than sell.

Bitcoin surged to a new all-time high on Sunday morning, climbing to just above $125,700 on the Coinbase platform. This milestone comes as the supply of Bitcoin on centralized exchanges hit its lowest point in six years.

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According to data from Glassnode, the total Bitcoin balance on exchanges dropped to 2.83 million BTC on Saturday. Another analytics firm, CryptoQuant, reports a slightly lower reserve of 2.45 million BTC, marking a seven-year low. Over the past two weeks, more than 114,000 BTC—worth more than $14 billion—have flowed out of these exchanges, Glassnode indicated.

Blockchain analysts note that when investors move Bitcoin off exchanges into personal wallets or company reserves—known as self-custody—it often signals a plan to hold onto the cryptocurrency rather than sell it in the near future. Bitcoin balances on exchanges represent available supply, which could be sold on the open market at any time.

“Hearing exchanges are out of Bitcoin,” said Matthew Sigel, head of digital assets research at VanEck, in a recent statement. He suggested a potential official shortage could develop as soon as Monday morning. Trader Mike Alfred added, “I just got off a 20-minute call with THE guy who runs the most important OTC desk… at the current pace, they will be completely out of Bitcoin to sell within two hours of futures opening tomorrow, unless the price goes to $126,000 to $129,000. Things getting wild.”

The last time Bitcoin exchange balances were this low was in June 2019, when the asset traded at about $8,000 during a market downturn. Today’s decline in exchange reserves comes as Bitcoin marks significant price gains, with experts suggesting that reduced supply could impact future price movements.

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For more price data, see Tradingview’s BTC/USD chart. Details on exchange balances can be viewed at Glassnode and CryptoQuant.

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