Bitcoin exchange reserves have fallen to their lowest levels since 2018, signaling a market supply shock caused by sustained institutional ETF demand and long-term holding behavior. Current data reveals that Bitcoin’s available supply on exchanges has dwindled to just 14.5% of the total circulating supply – the lowest point recorded since August 2018.
The scarcity extends beyond exchanges, with over-the-counter trading balances also reaching historic lows. This dual depletion indicates severely constrained market liquidity as available Bitcoin inventories shrink significantly.
Institutional accumulation has emerged as the primary driver, with Bitcoin exchange-traded funds recording 15 consecutive days of inflows totaling over $4.7 billion. This persistent institutional demand has maintained Bitcoin’s price resilience above the $100,000 psychological barrier.
Market analysts observe that the convergence of shrinking exchange reserves and depleted OTC inventories creates fundamental conditions for sustained price appreciation. Optimistic projections now place Bitcoin’s 2025 price targets between $140,000 and $200,000, though experts caution that volatility remains an inherent market factor.
The combination of institution-led buying pressure and diminished liquid supply establishes strong foundations for potential value growth throughout the year.