Bitcoin News Today: Bitcoin's Exodus From Exchanges Marks Its Rise as Corporate Reserve Asset

Bitcoin's exchange reserves have plummeted to a six-year low, signaling a tightening supply environment as institutional and retail investors increasingly shift holdings into long-term storage or ETFs. Data from blockchain analytics platforms show that as of October 2025, the total Bitcoin held on centralized exchanges has dropped to 2.45 million BTC, according to CryptoQuantBTC Price Prediction as Reserves Hit 6-Year Low—Is $150K Next?^[2], and 2.83 million BTC, per GlassnodeBitcoin Hits $125K as Exchange Balances Drop to Six-Year Low^[1], marking levels not seen since 2019. This represents a significant decline from the 3.05 million BTC held on exchanges in mid-April 2025Bitcoin Exchange Reserves Drop to 6-Year Low^[3]. Over two weeks, more than 114,000 BTC-valued at over $14 billion-have exited exchanges, driven by a combination of self-custody adoption, corporate treasury allocations, and spot Bitcoin ETF inflows.

The exodus of Bitcoin from exchanges reflects growing confidence in the asset's long-term value. Institutional investors, including corporations like MicroStrategy and firms managing digital asset treasuries, have been aggressively accumulating BTC, with over 100,000 BTC added to corporate holdings since April 2025Bitcoin Exchange Reserves Drop to 6-Year Low^[3]. Spot Bitcoin ETFs have further accelerated this trend, with cumulative inflows reaching $58 billion since their launch in early 2024Bitcoin ETFs seen to add $20bn in inflows before 2026 as price …^[5]. BlackRock's iShares Bitcoin Trust (IBIT) alone holds $87.7 billion in assets, accounting for 6.5% of Bitcoin's circulating supplyBitcoin ETFs: $48B Projected Inflows for 2025^[4]. These ETFs have become a dominant force in the market, providing regulated access to Bitcoin for institutional and retail investors while reducing liquidity on exchanges.

The shrinking exchange supply has amplified upward price pressure. With only 11% of Bitcoin's total supply available for trading on exchangesBitcoin Exchange Reserves Drop to 6-Year Low^[3], the reduced liquidity means even modest demand can trigger sharp price movements. Bitcoin recently surged past $125,000, a new all-time high, as "Uptober" momentum took holdBitcoin Hits $125K as Exchange Balances Drop to Six-Year Low^[1]. Analysts attribute this to a combination of ETF-driven demand and the scarcity effect created by low exchange reserves. VanEck's Matthew Sigel noted that OTC desks are already reporting potential shortages if prices fail to cool, while strategist Mike Alfred highlighted that major desks could deplete Bitcoin reserves within hours of futures markets openingBitcoin Hits $125K as Exchange Balances Drop to Six-Year Low^[1].

The market dynamics are further reinforced by technical indicators. Bitcoin's price has broken out of a falling channel on the daily timeframe, with the MACD indicator showing a bullish crossoverBTC Price Prediction as Reserves Hit 6-Year Low—Is $150K Next?^[2]. On-chain metrics confirm declining exchange inflows, with average net inflows dropping from 0.55 to 0.48 as prices climbed from $108,000 to $124,000BTC Price Prediction as Reserves Hit 6-Year Low—Is $150K Next?^[2]. These trends suggest a supply-constrained environment, where reduced selling intent and institutional accumulation support a sustained uptrend. However, some analysts caution that macroeconomic uncertainties and regulatory shifts could disrupt this trajectory. Robert Kiyosaki has predicted a potential price crash in July 2025, citing broader economic concernsBitcoin Exchange Reserves Drop to 6-Year Low^[3], while others warn of volatility risks tied to ETF outflows or regulatory changes.

The implications of these developments extend beyond price action. Low exchange reserves and ETF-driven demand are reshaping Bitcoin's role in traditional finance. By mid-2025, 80 corporations hold approximately 3.4% of Bitcoin's total supply, with MicroStrategy alone controlling 580,000 BTCBitcoin Exchange Reserves Drop to 6-Year Low^[3]. The IRS's clarification of tax rules for unrealized crypto gains has also incentivized corporate adoption, as firms like Strategy Inc. now hold $77.4 billion in BTC without facing billion-dollar tax liabilitiesBitcoin Hits $125K as Exchange Balances Drop to Six-Year Low^[1]. This institutionalization underscores Bitcoin's transition from speculative asset to a strategic reserve, with ETFs acting as a bridge to mainstream portfolio allocation.

Despite the bullish signals, the market remains vulnerable to sudden shifts. A sharp drop in ETF inflows or regulatory headwinds could trigger a liquidity crunch, particularly as exchange balances approach critical thresholds. The historical precedent of supply shocks during prior bull cycles suggests that Bitcoin's price could test $150,000 by year-end if current trends persistBTC Price Prediction as Reserves Hit 6-Year Low—Is $150K Next?^[2]. However, the interplay of macroeconomic factors, geopolitical risks, and evolving regulatory frameworks will ultimately determine the trajectory of this cycle.