What happened?
Bitcoin rallied to a new all‑time high above $125,700 as “Uptober” momentum pushed prices past the August record, while exchanges saw reserves drop to multi‑year lows as over 114,000 BTC left platforms in just two weeks. Supply on exchanges fell to levels not seen since 2019, suggesting more coins are moving into long‑term wallets, custodial vaults, or corporate treasuries. At the same time, big holders like Strategy Inc. have seen their BTC positions balloon in value, and OTC desks are warning of tight spot availability if demand spikes.
Who does this affect?
Retail traders feel the immediate price moves and higher volatility as on‑exchange liquidity thins and orders can move the market more easily. Institutional investors and corporate treasuries are affected because shrinking exchange supply and growing corporate holdings can make acquiring large blocks of BTC harder and more expensive. Exchanges, OTC desks, and market makers face pressure on inventory and spreads, while miners and long‑term holders benefit from stronger price discovery and reduced selling pressure.
Why does this matter?
Tighter available supply and large outflows from exchanges create upward price pressure, increasing the likelihood of sharper rallies or squeezes if demand keeps rising. That scarcity can widen premiums in OTC and spot markets, force larger players to pay up for liquidity, and amplify volatility around futures expiries or ETF flows. Overall, the mix of corporate accumulation, favorable tax guidance, and thinning exchange reserves raises the odds of sustained price appreciation and a more fragile, fast‑moving market environment.