Bitcoin Exchange Supply Hits 7-Year Low Amid Institutional Demand Surge

Bitcoin’s supply on exchanges has reached a seven-year low, reflecting a significant shift in investor behavior amid rising institutional demand and increasing market dominance. Long-term holders are moving BTC off exchanges into cold storage, signaling heightened confidence and reduced sell pressure in the market. This trend, combined with growing institutional interest, sets the stage for a potential major breakout in Bitcoin’s market trajectory.

Bitcoin’s exchange balances have plummeted to just 14.5%, the lowest level since August 2018, underscoring a pronounced shift toward long-term holding strategies. This decline is driven by investors transferring their holdings to cold wallets, reducing the available supply on exchanges and thereby limiting immediate sell pressure. Such behavior is often interpreted as a bullish signal, reflecting confidence in Bitcoin’s future price appreciation. Market analysts note that this sustained outflow from exchanges is unusual compared to previous cycles, where exchange balances fluctuated more dramatically.

The rise in institutional participation has been a critical factor in this trend. Enhanced custody solutions tailored for institutional investors have made it easier and safer for large holders to store Bitcoin off exchanges. This has contributed to a steady accumulation phase, with institutions preferring to hold Bitcoin as a digital store of value rather than engaging in frequent trading. The reduced liquidity on exchanges, combined with growing institutional demand, creates a supply-demand imbalance that could catalyze significant price movements.

Bitcoin’s market dominance increased by approximately 1% in June, reaching a cycle peak that signals renewed institutional confidence. This shift indicates that investors are prioritizing Bitcoin over alternative cryptocurrencies, viewing it as a more reliable and established asset within the digital currency ecosystem. The dominance metric serves as a barometer for market sentiment, with rising dominance often correlating with Bitcoin outperforming altcoins during bullish phases.

Unlike previous cycles, investors now have diversified avenues to gain Bitcoin exposure beyond direct purchases. Exchange-traded funds (ETFs), publicly traded companies holding Bitcoin, and blockchain-focused equities provide institutional and retail investors with accessible investment options. This broadens Bitcoin’s appeal and reinforces its status as a foundational asset in the crypto space. The increased accessibility contributes to sustained demand, further supporting the upward trend in dominance.

Market experts, including prominent traders, suggest that Bitcoin’s current consolidation phase is a deliberate market mechanism to shake out weaker hands before a substantial rally. The convergence of low exchange supply, rising institutional demand, and increasing dominance creates a favorable environment for a strong breakout. Investors are encouraged to monitor on-chain metrics and institutional flows closely, as these indicators often precede significant price movements in Bitcoin.

Bitcoin’s seven-year low in exchange supply, coupled with rising institutional demand and dominance, signals a pivotal accumulation phase. This dynamic reduces sell-side pressure and enhances scarcity, positioning Bitcoin for a potential major breakout. As the market evolves, these trends underscore Bitcoin’s growing role as a preferred digital asset for long-term investors and institutions alike.

On July 1, U.S. spot Bitcoin ETFs experienced a significant net outflow of approximately $342 million, marking a sharp reversal in investor sentiment. This shift is marked by the first outflow since June 6, and interrupted a period of sustained demand that had pushed cumulative net inflows to about $49 billion and total ETF assets under management (AUM) above $131 billion. The pullback comes after a two-week run of inflows, exceeding $500 million on at least three different occasions in that period. On June 24, ETFs absorbed $588.55 million, followed by $547.72 million on June 25 and $501.27 million on June 27. All told, the surge propelled total cumulative net inflows across all U.S. spot Bitcoin ETFs to a high of $48.97 billion by June 30. But Monday’s outgoings dragged that figure back down to $48.63 billion. The last time the ETFs experienced a drop was on June 6, when the market recorded a net outflow of just under $48 million following a much larger $278.44 million exit on June 5.

This latest slowdown has coincided with reports that public corporations are ramping up their Bitcoin accumulation, buying 131,000 BTC in the second quarter of 2025 to overshadow ETF inflows of 111,000 BTC in the same period. According to BitcoinTreasuries, this is the third consecutive quarter in which public companies have picked up more BTC than exchange-traded funds.

Bitcoin ($BTC), the flagship crypto asset, has seen a significant increase in dominance in June 2025. The latest data from Axel Adler Jr., the market capitalization of Bitcoin ($BTC) has jumped by 1% over June, touching the exclusive local peak within the present market cycle. The crypto analyst took to social media to share insights into the notable increase in the Bitcoin dominance over the past month. The market data points out that Bitcoin’s market dominance currently accounts for 65%, gradually moving toward the 70% threshold. Particularly, in June, a huge 1% increase took place in the market cap, indicating a considerable potential to reach the new highs in the near future. In addition to this, the data also reveals that the dominance of Bitcoin peaks during major bull markets. On the other hand, it reportedly plunges amid the altcoin rallies. At the moment, the rise in Bitcoin’s dominance is a clear signal of the growth in institutional adoption. A great amount of the strength of the top crypto asset is associated with its broadening accessibility in conventional markets. Dissimilar to the previous cycles, the present cycle is marked by a massive increase in the investor exposure to Bitcoin ($BTC) via crypto platforms. Apart from that, the prominent names in the industry, like Strategy, are also contributing a lot to this overall trend by continuously acquiring $BTC. While the current market dominance level of Bitcoin is well above the 60%, the steady increase discloses the continuous inclusion of institutional capital. Moreover, the smaller entities like Metaplanet, which offer relatively volatile opportunities for trading, are now absorbing a demand proportion that formerly moved toward altcoins. Now, as July has started, Bitcoin ($BTC) is expected to make a notable push from the present 65% to 70% in terms of market dominance.

Green Minerals AS has secured a structured financing deal worth NOK 250 million (roughly $23 million) from global investment group LDA Capital, aimed at supporting its growing digital asset strategy. The agreement gives Green Minerals an “At-the-Market” (ATM) share issuance option, allowing it to sell new shares gradually based on market conditions, helping it avoid sudden dilution of shareholder value. As part of the deal, LDA Capital also secured a 12-month call option to purchase up to 1% of Green Minerals’ shares at NOK 6.95 each. Company chairman Ståle Rodahl emphasized that this flexible financing structure is key to advancing their Bitcoin holdings strategy. “We want to increase our shares-per-Bitcoin ratio without compromising long-term sustainability,” he noted. LDA Capital, which has already deployed $400 million into Web3 ventures and over $11 billion in traditional financing, said this partnership reflects its support for innovative capital structures that blend natural resource development with digital finance. Green Minerals also clarified that it will draw down funds only in favorable market conditions, deciding the timing and size of each issuance independently. The company hinted that it may explore further financing deals but will make such decisions public if and when they arise.