Bitcoin Supply Hits 8-Year Low on Exchanges; Whales Stack Up
Bitcoin supply on exchanges has plunged to an eight-year low of 1.8 million BTC as smart money steps in. Over the past three days, 560 000 BTC left centralized platforms, with more than 630 000 BTC withdrawn in a single night. Meanwhile, whale wallets holding over 10 000 BTC reached a five-month high, signaling strong conviction beneath the surface. Recent buyers endured significant losses during a 37% retracement from $126 000 to $80 000, pushing short-term holder (STH) MVRV down from 1.09 to 0.78. Despite extreme fear—reflected in a Fear & Greed Index of 12 and Supply in Profit at 65%—Bitcoin’s swift 3% rebound off $86 000 suggests selling pressure may have peaked. The steady whale accumulation and shrinking exchange reserves point to an early supply transfer from weak hands to stronger holders. Traders should watch for a potential market bottom formation, as historical patterns show similar liquidity drains often precede sustained rallies.
Bullish
The dramatic fall in Bitcoin supply on exchanges combined with a surge in whale accumulation suggests a bullish market outlook. Historically, major BTC withdrawals and low exchange reserves have preceded strong upward moves, as smart money absorbs coins from shorter-term holders at distressed prices. Key indicators—the drop in short-term holder MVRV to capitulation levels, a sharp 3% rebound off a key support near $86 000, and extreme Fear & Greed readings—mirror past market bottoms that led to sustained rallies. With selling pressure easing and supply transfer underway, both short-term momentum and long-term fundamentals point toward a bullish trend.