Dec 9, 2025
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Bitcoin Exchange Supply Drops by Over 400,000 BTC Since December
Key Points:
- Bitcoin's on-exchange supply has decreased significantly, with over 403,000 BTC removed since December 7, 2024.
- This reduction represents approximately 2% of Bitcoin's total supply, indicating fewer coins are available for quick sale.
- Historically, lower exchange balances have been associated with reduced sudden sell-offs.
- Institutions, including ETFs and public companies, are acquiring significant amounts of Bitcoin, with holdings totaling nearly 11% of the overall supply.
- The limited availability of Bitcoin could lead to sharper price movements when demand increases.
Market Observations:
- Bitcoin is trading near $90,650, showing a slight increase. Year-to-date gains are at 11%.
- The market has experienced fluctuations, with a low of $89,540 and a high of $92,290 recently.
- Traders are monitoring the Federal Reserve meeting for potential impacts on market volatility, as interest rate decisions can affect broader markets, including crypto.
Outlook and Risks:
- The decrease in exchange-held Bitcoin suggests a bullish scenario due to reduced immediate selling liquidity.
- This scarcity may also result in heightened price sensitivity to changes in demand, potentially causing sharp price swings.
- Analysts will observe if institutional investors continue their accumulation or slow down purchases.