Bitcoin Exchange Supply Breaks Equilibrium: Whales Scoop Up 240,000 BTC

Source Newsbtc

On-chain data shows the Bitcoin spot exchange inventory, which had been stuck in consolidation earlier, has finally started following a new trajectory.

Bitcoin Spot Exchange Supply Has Seen A Sharp Plunge Recently

In a new post on X, analyst Willy Woo has discussed about the trend in the Bitcoin spot exchange inventory. This metric keeps track of the total amount of the cryptocurrency that’s sitting in the wallets of all centralized spot exchanges.

This part of the exchange supply refers to the actual tokens of the asset that exist on the blockchain. The exchange supply that doesn’t actually involve users to own BTC, as is the case with derivatives products, is known as “paper BTC.”

When the spot exchange inventory rises, it means the investors are depositing a net number of coins into the wallets associated with these platforms. As one of the main reasons why holders might transfer their BTC to exchanges is for selling-related purposes, such a trend can have a bearish impact on the asset’s price.

On the other hand, the indicator going down implies the exchange outflows are outweighing the exchange inflows. Investors usually take their coins off into self-custody when they plan to hold into the long-term, so this kind of trend can be bullish for the cryptocurrency.

Now, here is a chart that shows the trend in the Bitcoin spot exchange inventory over the last couple of years:

Bitcoin Spot Exchange Supply

As displayed in the above graph, the Bitcoin spot exchange inventory saw a large plunge around the time of the FTX collapse back in November 2022. This suggests a large movement of coins occurred out of these platforms as the asset’s bear market reached its bottom.

Following this plummet, the indicator started a phase of consolidation that lasted for the entirety of 2023 and most of 2024. The trend finally broke in the last couple of months of 2024, when the metric registered a sharp crash.

These outflows came alongside Bitcoin’s exploration of new all-time highs, implying the accumulation from the investors might have played a role in the run. In total, 240,000 BTC exited the exchange-related wallets during this plunge.

Woo has pointed out that Microstrategy’s buying in this period summed up to about 192,000 BTC, which means there are other whales present in the market taking significant amounts off the exchanges.

So far, the downtrend in the spot exchange inventory has shown no signs of reaching a bottom, as outflows have continued into 2025. If investors indeed keep up the accumulation in the near future as well, then Bitcoin could benefit from some further bullish momentum.

BTC Price

Bitcoin has continued its recovery in a sharp fashion during the last 24 hours as its price has broken back above the $101,700 mark.

Bitcoin Price Chart
Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
WTI Oil edges up to $61.00 with concerns about oversupply weighingThe US benchmark West Texas Intermediate Oil is posting moderate gains on Friday, trading at $61.00.
Author  FXStreet
Oct 03, Fri
The US benchmark West Texas Intermediate Oil is posting moderate gains on Friday, trading at $61.00.
placeholder
AUD/USD rises to near 0.6600 as traders pare RBA dovish betsThe AUD gains amid easing bets supporting interest rate cuts by the RBA in the policy meeting in November.
Author  FXStreet
Oct 03, Fri
The AUD gains amid easing bets supporting interest rate cuts by the RBA in the policy meeting in November.
placeholder
Strong Deliveries Fail to Reverse Slide — Policy Expiry Sends Tesla Stock “Higher Open, Lower Close”Tesla’s stock took a rollercoaster ride: shares surged more than 4% in pre-market trading, only to reverse sharply after the open and close down over 5%.
Author  TradingKey
Oct 03, Fri
Tesla’s stock took a rollercoaster ride: shares surged more than 4% in pre-market trading, only to reverse sharply after the open and close down over 5%.
placeholder
Copper heads for weekly gain, aided by supply disruptionsCopper prices rose for the third consecutive session on Friday and are set for a weekly gain.
Author  Reuters
Oct 03, Fri
Copper prices rose for the third consecutive session on Friday and are set for a weekly gain.
placeholder
JOLTS Job Openings expected to decline slightly in AugustMarkets expect Job Openings in August to decline slightly to 7.1 million compared to the previous month's reading of 7.181 million.
Author  FXStreet
Sep 30, Tue
Markets expect Job Openings in August to decline slightly to 7.1 million compared to the previous month's reading of 7.181 million.
goTop
quote