In a significant market development, the amount of Bitcoin held on centralized exchanges has hit its lowest level since 2018, marking a 7-year low. This data suggests that more investors are moving their BTC off exchanges and into self‑custody or cold storage, a trend typically associated with long‑term holding behavior.
This shift comes amid increasing global interest in Bitcoin as a store of value, alongside growing concerns about centralized platforms following recent regulatory scrutiny and exchange collapses in prior years.
What This Means for Bitcoin’s Price
When large amounts of BTC are withdrawn from exchanges, it usually means less selling pressure in the market. With fewer coins available for instant trading, the reduced supply can help support or even increase Bitcoin’s price, especially during high‑demand periods.
This trend also reflects growing investor confidence in the long‑term value of Bitcoin. Rather than trading, more users appear to be adopting a “HODL” mindset — holding their assets through volatility in anticipation of future growth.
BTC ON EXCHANGES HITS 7-YEAR LOW!
— Coin Bureau (@coinbureau) October 7, 2025
Bitcoin supply on exchanges just dropped to its lowest level since 2018. pic.twitter.com/Zf09L7r1Do
Institutional and Retail Adoption Rise
The drop in exchange balances may also indicate a rise in institutional and retail adoption, where BTC is being moved to secure wallets for custody or compliance reasons. With ETFs, family offices, and high‑net‑worth individuals entering the space, secure storage is becoming a priority.
Analysts view this as a bullish indicator that could support a supply squeeze in future rallies. With demand rising and supply shrinking from active markets, Bitcoin could be setting the stage for its next major move.