Bitcoin News Today: Institutions Stockpile Bitcoin, Pushing Exchange Reserves to Historic Lows

Bitcoin's exchange reserves have reached historic lows, sparking renewed interest in the cryptocurrency's potential price trajectory. According to on-chain data, Bitcoin held on centralized exchanges has dropped to approximately 2.1 million BTC as of April 2025, a decline of 8.3% over the preceding 30 days Bitcoin Exchange Reserves Plummet: What This Means for BTC Price Action in 2025^[1]. This sharp reduction in available supply suggests growing accumulation by long-term holders and institutions, with over 114,000 BTC-valued at $14 billion-moving off exchanges in just two weeks Bitcoin Hits $125K as Exchange Balances Drop to Six-Year Low^[2]. Analysts attribute this trend to increased adoption of self-custody solutions and strategic institutional positioning, as evidenced by firms like MicroStrategy and Marathon Digital expanding their BTC holdings Bitcoin's Big Shift: Why Institutions, Not Retail Traders, Are Buying More BTC Now^[5].

The decline in exchange reserves coincides with Bitcoin's price action near $68,450 in April 2025, with trading volumes on Binance surging 15% to $2.8 billion in a 24-hour period Bitcoin Exchange Reserves Plummet: What This Means for BTC Price Action in 2025^[1]. On-chain metrics further reinforce this dynamic: the number of addresses holding at least 1 BTC rose 3.5% month-over-month, reaching 1.02 million Bitcoin Exchange Reserves Plummet: What This Means for BTC Price Action in 2025^[1]. Meanwhile, 78% of Bitcoin holders were in profit as of April 2025, reducing immediate selling pressure and reinforcing the supply squeeze Bitcoin Exchange Reserves Plummet: What This Means for BTC Price Action in 2025^[1]. Historical precedents, such as the 45% price rally following a similar reserve drop in Q4 2020, suggest that sustained demand could drive further appreciation Bitcoin Exchange Reserves Plummet: What This Means for BTC Price Action in 2025^[1].

Institutional accumulation has intensified, with large investors amassing 507,700 BTC over the past year, while retail holdings-wallets with less than 1 BTC-declined by 54,500 BTC Bitcoin Flows to Institutions at Record Pace While Retail Exits, On-Chain Data Shows^[6]. This divergence highlights a maturing market where corporate treasuries and investment firms now dominate Bitcoin's price dynamics. For instance, Strategy Inc.'s BTC holdings surged to $77.4 billion in 2025, reflecting its strategic use of Bitcoin as a hedge against fiat depreciation Bitcoin Hits $125K as Exchange Balances Drop to Six-Year Low^[2].

Technical indicators also support a bullish outlook. Bitcoin's Relative Strength Index (RSI) approached overbought territory at 62 in April 2025, while the Moving Average Convergence Divergence (MACD) showed a bullish crossover Bitcoin Exchange Reserves Plummet: What This Means for BTC Price Action in 2025^[1]. Additionally, the Bollinger Bands on the 4-hour chart tightened around $68,000, signaling a potential breakout Bitcoin Exchange Reserves Plummet: What This Means for BTC Price Action in 2025^[1]. However, market participants caution that derivatives-driven momentum remains fragile, with spot volume lagging behind futures activity Bitcoin Consolidates as Exchange Reserves Fall, Supply Tightens^[3].

The tightening supply backdrop has also sparked speculation about Bitcoin's next move. If current trends persist, analysts predict a potential test of $130,000, supported by reduced exchange liquidity and stable ETF inflows Bitcoin Consolidates as Exchange Reserves Fall, Supply Tightens^[3]. Conversely, a failure to sustain above $106,295 could trigger a retracement toward $103,952 Bitcoin Flows to Institutions at Record Pace While Retail Exits, On-Chain Data Shows^[6].