Bitcoin recently surged to an unprecedented $113,923 price level, driven by a substantial decrease in exchange-held supply. Analysis shows a 21% reduction of 315,830 BTC from trading platforms over the past four months.
This price surge coincides with accelerating self-custody adoption among long-term holders seeking enhanced asset security. Market data reveals exchange balances declining by 61% since mid-2020, equivalent to 1.88 million BTC removed from trading venues.
The depletion creates scarcity dynamics while lowering immediate sell-off risks, contributing to increased price stability and reduced market volatility. Investor behavior indicates growing preference for long-term asset preservation over short-term profit-taking.
These conditions collectively foster bullish momentum through diminished exchange liquidity and heightened capital discipline among Bitcoin holders seeking stronger protection against exchange vulnerabilities.