Bitcoin Supply Off Exchanges Hits 6-Year Low — What It Means for Price Action

Bitcoin exchange supply has plunged to a six-year low, with approximately $4.8 billion worth of BTC withdrawn in October — sparking debate over whether this signals bullish accumulation or a looming liquidity trap.

In October 2025, Bitcoin holders collectively withdrew nearly 45,000 BTC from centralized exchanges — marking the largest monthly outflow since 2019. The exodus pushed available supply on major venues like Binance and Coinbase to levels unseen in six years.

While this could reflect rising confidence among long-term holders, analysts warn it may also expose a thinner market structure. With fewer coins available for trading, even moderate order imbalances could produce outsized price swings.

Despite macroeconomic pressures and a recent slide below $108 000, on-chain data suggest investors are locking up assets for the long term rather than panic-selling. Historically, such withdrawals have preceded large upside movements — yet this time, liquidity conditions differ.

Key implications:

1. Less BTC on exchanges means sharper supply shocks if demand rises.
2. However, low float also creates fragile liquidity, amplifying volatility.
3. Support around $100 000 remains the key line to watch — a break below could quickly cascade.

In short, while the supply-side data appears bullish, the market stands on thin ice — one sharp move could turn accumulation optimism into forced deleveraging.

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