Cryptocurrency exchanges currently hold 2.35 million bitcoins, the lowest level since 2018. This represents about 11.8% of Bitcoin’s total circulating supply, down from 2.72 million in January. Recent weeks have seen massive outflows, with $2.7 billion worth of Bitcoin (30,000 BTC) leaving exchanges in just seven days. The trend shows investors are moving their coins to private wallets and institutional funds, suggesting major shifts in how Bitcoin is being stored and traded.
Quick Overview
- Cryptocurrency exchanges currently hold 2.35 million Bitcoin, representing 11.8% of the total circulating supply.
- Exchange-held Bitcoin has dropped to its lowest level since 2018, following significant outflows totaling $2.7 billion recently.
- Recent 30-day outflows reached 85,000 BTC ($7.6 billion), indicating a strong trend of investors moving assets off exchanges.
- Binance leads exchange activity with 14.9 million weekly visits, followed by Bybit with 4.9 million visits.
- The decline in exchange holdings coincides with rising Bitcoin ETF popularity, which now collectively hold 1 million BTC.
While Bitcoin’s price continues to make headlines, a significant shift is happening behind the scenes on cryptocurrency exchanges. The amount of Bitcoin held on exchanges has dropped to 2.35 million as of January 13, 2025, reaching its lowest level since 2018. This represents about 11.8% of Bitcoin’s total circulating supply, showing a notable decline from 2.72 million BTC in January.
Recent data shows massive outflows from exchanges, with $2.7 billion worth of Bitcoin (30,000 BTC) moving off exchanges in just the past week. Over the last 30 days, this number has grown to $7.6 billion (85,000 BTC). The top exchanges still see significant traffic, with Binance leading at 14.9 million weekly visits, followed by Bybit with 4.9 million, and Coinbase with 65,000 visits.
These outflows aren’t happening in a vacuum. They’re coinciding with the growth of Bitcoin ETFs, which now hold 1 million BTC collectively. BlackRock has emerged as the largest institutional holder, managing 470,000 BTC valued at $41 billion. Institutional investors are taking advantage of market conditions to accumulate Bitcoin at what they consider discounted prices.
The declining exchange reserves point to a broader trend of investors moving their Bitcoin into private wallets for long-term storage. The amount of Bitcoin that’s not actively traded has grown to 2.2 times higher than the new Bitcoin issuance rate. The implementation of the Lightning Network is making it easier for users to conduct transactions without keeping funds on exchanges. While Bitcoin remains the most prominent among active cryptocurrencies, which number around 8,985, its exchange dynamics are unique.
It’s worth noting that only 5-10% of the circulating supply is actively traded, and about 20% of the total supply is believed to be lost forever.
This situation is creating what some analysts call a potential “supply shock.” As more Bitcoin moves off exchanges and into long-term storage, there’s less available for trading. CryptoQuant data confirms this trend has been consistent since December, showing no signs of slowing down.
The decreasing availability on exchanges, combined with strong demand, is affecting Bitcoin’s market dynamics. The current exchange reserve levels suggest a significant change in how people are handling their Bitcoin.
Instead of keeping it on exchanges for trading, more investors are choosing to hold for the longer term. This shift in behavior, combined with the growing institutional presence through ETFs, is creating a unique situation where a smaller portion of Bitcoin’s total supply is available for daily trading than in previous years.
Frequently Asked Questions
What Happens to Bitcoin Exchange Reserves During Market Volatility?
During market volatility, Bitcoin exchange reserves typically show significant changes.
When prices swing dramatically, traders often move their Bitcoin onto exchanges to trade quickly. This leads to short-term increases in exchange reserves.
However, once volatility settles, many investors pull their Bitcoin off exchanges for safer storage.
Professional traders, who control most of the Bitcoin sent to exchanges, are usually behind these reserve fluctuations.
How Secure Are Cryptocurrencies Stored on Centralized Exchanges?
Cryptocurrencies on centralized exchanges have mixed security levels. While exchanges use strong protective measures like multi-factor authentication and encryption, they’re still frequent targets for hackers.
Major exchanges keep most user funds in offline “cold storage” to prevent theft. However, since exchanges control users’ private keys, there’s always some risk.
Several exchanges have faced security breaches, resulting in millions of dollars in stolen crypto over the years.
Which Cryptocurrency Exchange Holds the Largest Amount of Bitcoin?
Binance currently holds the largest amount of Bitcoin among cryptocurrency exchanges, with approximately 584,083 BTC in its reserves.
That’s more than its closest competitor, Coinbase, which holds about 533,048 BTC.
Binance took over the top spot after steadily increasing its reserves while other exchanges saw decreases.
Together, these two exchanges control a significant portion of all exchange-held Bitcoin, with other major platforms like Bitfinex, Gemini, and Kraken following behind.
Why Do Bitcoin Exchange Balances Fluctuate Throughout the Year?
Bitcoin exchange balances go up and down throughout the year for several main reasons.
When markets are doing well, people often take their Bitcoin off exchanges to hold long-term. During market downturns, more people put Bitcoin on exchanges to sell.
Big events like regulatory changes, security concerns, or global economic news can also cause sudden shifts.
Exchange balance changes basically reflect how investors are feeling about the market.
How Do Exchange-Held Bitcoin Amounts Compare to Institutional Holdings?
Institutional investors now hold more Bitcoin than exchanges do.
While exchanges have about 2.2 million Bitcoin, institutions control roughly 2.96 million.
This shift happened in late 2023 when institutional holdings first surpassed exchange balances.
Big players like MicroStrategy and Grayscale Bitcoin Trust are leading the institutional side, while Binance and Coinbase dominate exchange holdings.
Exchange-held Bitcoin tends to be more actively traded than institutional holdings.
