Bitcoin News Today: Bitcoin Exchange Supply Hits Multi-Year Low Amid Strategic Holding Trends

Bitcoin's exchange-held supply has fallen to a multi-year low, raising speculation about the potential for a supply-driven price shock. As of April 2025, the amount of Bitcoin stored on major centralized exchanges stood at 586,753 BTC, with Binance reporting a significant outflow of 51,000 BTC between April and May of the same year. This trend indicates that traders and holders are increasingly moving their BTC holdings into cold storage, reducing the immediate availability of Bitcoin for trading [1]. The decline in exchange balances has been attributed to selective profit-taking and strategic accumulation by long-term holders, particularly as institutional and early adopters remain in +230% profit territory [1].

Investors are showing a stronger inclination to hold rather than trade, with the Spent Output Profit Ratio (SOPR) at 1.03—an indicator of modest profit-taking but no panic selling. Meanwhile, the MVRV (Market Value to Realized Value) ratio has climbed to 2.2 and is approaching its 365-day moving average, a historical precursor to price rebounds. Additionally, the NVT (Network Value to Transactions) golden-cross stands at 1.51, below the speculative threshold of 2.2, suggesting that Bitcoin's valuation is being driven by real transactional activity rather than speculative fervor [1].

Exchange outflows are not isolated to Bitcoin. A separate report noted that exchange balances for a specific token remained stable at 317 million, indicating no significant sell-off pressure from centralized platforms. This stability suggests that large holders across the crypto market are not actively dumping their assets, reinforcing the narrative of tightening liquidity [2]. Analysts have highlighted that such a tightening in supply can precede sharper price movements, especially in a market where even minor shifts in demand can lead to significant price changes [1].

The broader macroeconomic environment is also playing a role in shaping Bitcoin’s near-term trajectory. U.S. tariff policies and the Federal Reserve's interest rate decisions are influencing investor sentiment. Although the Sell-Side Risk ratio remains elevated, it is still below the levels seen in 2017 and 2021, indicating that the current distribution phase appears to be controlled rather than panic-driven. However, investors are advised to remain cautious, particularly with the upcoming unlock of $173 million in SUI tokens on August 1, which could introduce additional downward pressure on the crypto market [5].

Tactical entry strategies are being recommended to navigate the current market phase. Dollar-cost averaging during pullbacks and leveraging Bitcoin ETFs—such as BlackRock’s IBIT, which held 580,430 BTC as of April 2025—are being highlighted as methods to reduce volatility and gain exposure during periods of macroeconomic uncertainty [1]. Institutional interest in Bitcoin ETFs has surged, offering a more liquid and stable alternative for investors.

Looking ahead, the coming months will be critical in determining whether Bitcoin can break out of its current trading range. A sustained NVT golden-cross above 1.8 and a breakout above the MVRV ratio’s 365-day moving average could signal the start of a new bull phase. Additionally, any further rate cuts by the Federal Reserve or a temporary pause in U.S. tariff measures could provide the catalyst needed for a sustained upward move [1].

Source:

[1] Bitcoin's Profit-Taking and Tariff Risks: A Tactical Entry Point, [https://www.ainvest.com/news/bitcoin-profit-tariff-risks-tactical-entry-point-market-consolidation-2508/](https://www.ainvest.com/news/bitcoin-profit-tariff-risks-tactical-entry-point-market-consolidation-2508/)

[2] 3 Altcoins Crypto Whales Are Buying After Announcement, [https://www.mitrade.com/insights/news/live-news/article-3-1005058-20250801](https://www.mitrade.com/insights/news/live-news/article-3-1005058-20250801)

[5] SUI Price Outlook: Bulls on Edge as $173M Token Unlock Looms, [https://coinjournal.net/news/sui-price-outlook-bulls-on-edge-as-173m-token-unlock-looms/](https://coinjournal.net/news/sui-price-outlook-bulls-on-edge-as-173m-token-unlock-looms/)