What happened?
Bitcoin balances on centralized exchanges have plunged to multi-year lows, with over 45,000 BTC withdrawn since early October. Long-term holders are moving coins into cold storage, taking supply off the market rather than leaving it available to trade. Prices have stayed steady to slightly up, suggesting these outflows are driven by accumulation, not panic selling.
Who does this affect?
Traders and exchanges feel the immediate impact because thinner order books mean less liquidity and potentially larger price moves on size. Long-term investors and institutions benefit from reduced sell pressure if they keep accumulating, while short-term speculators may face more volatility. Miners and new buyers also compete for a smaller circulating supply, which can tighten markets further.
Why does this matter?
Less BTC on exchanges means lower sell-side liquidity, so even modest demand can lead to sharper price gains and quicker breakouts. With leverage at multi-year lows and holders largely unchanged, the risk of forced liquidations is reduced, making a more sustainable upward move more likely. If institutional or retail demand rises, this supply squeeze could accelerate a meaningful rally toward the key resistance levels traders are watching.