Bitcoin Exchange Reserves Plunge to 4-Year Low Amid Record $125,506 Price High

Bitcoin Exchange Reserves Hit Lowest Level Since 2019

Bitcoin (BTC) reserves on cryptocurrency exchanges have plummeted to around 2.8 million BTC, marking their lowest level since July 2019. This sharp decline coincides with Bitcoin reaching its all-time high (ATH) price of $125,506, signaling significant investor activity and a structural shift in asset storage.

On-chain analytics company Glassnode reports that as of November 6, major exchanges such as Binance, Coinbase, and Bitget collectively hold approximately 2.8 million BTC. This figure mirrors reserve levels last seen in mid-2019, when Bitcoin was trading at around $8,745. However, while exchange-held balances have dropped, Bitcoin’s price has experienced exponential growth, underlining a widening scarcity narrative.

From trading below $9,000 in June 2019, Bitcoin’s price has surged to a record-breaking $125,506 by October 2025, representing an extraordinary increase driven by heightened demand and declining liquidity.

Bitcoin Shift to Self-Custody Grows

The trend of declining exchange reserves underscores a deeper transformation in investor behavior. More holders are opting to transfer Bitcoin from centralized exchanges to personal or cold storage wallets, reflecting a growing emphasis on self-custody and security in digital asset management.

This shift aligns with the increasing institutional adoption of Bitcoin. Once regarded as a speculative asset, Bitcoin is now becoming a strategic addition to corporate treasuries. Data from Bitcoin Treasuries reveals that 25 new institutions acquired Bitcoin over the past month, bringing the total number of institutional holders to 344. The United States leads the charge, with 122 institutions—more than the combined total from Canada, Japan, Hong Kong, and the United Kingdom.

The collective institutional reserves of Bitcoin now outnumber those stored on exchanges. Institutions currently hold approximately 3.88 million BTC in corporate treasuries, exceeding exchange-held reserves by over 1 million BTC.

Bitcoin Scarcity Fuels Bullish Sentiment

The dramatic reduction in Bitcoin's availability on exchanges suggests reduced selling pressure and an increasingly scarce supply. With fewer Bitcoin accessible for trading, this scarcity could amplify upward price momentum.

At present, Bitcoin is trading at around $123,610—a slight dip from its ATH of $125,506—according to data from TradingView. Despite the minor pullback, the bullish rally that began in late September remains strong amid steady demand. The cryptocurrency is holding stable support near its 30-day moving average at $123,636.

Further reinforcing market resilience, Bitcoin's Relative Strength Index (RSI) currently stands at 53, signaling neutral market conditions that are neither overbought nor oversold. Analysts interpret this as a consolidation phase, one that could build momentum for renewed upward price movement.

If Bitcoin maintains its key support range between $122,000 and $123,000, coupled with persistent buying activity, it could soon retest the $125,000 level and potentially set the foundation for further gains. On the other hand, a breach below this range might induce a short-term correction, with levels potentially revisiting the $120,000 support zone.

Analysts Predict New Record Highs

Experts view the decline in cryptocurrency exchange reserves as a hallmark indicator of a bullish market cycle. “Falling exchange balances historically signal strong market sentiment,” analysts explain. “With this prolonged accumulation trend, Bitcoin is well-positioned to achieve new record highs before the year concludes.”

As the interplay between diminishing supply and strengthening demand continues, Bitcoin appears to be cementing its position not just as a scarce digital asset but as a cornerstone of modern financial systems. With the ongoing integration of Bitcoin into institutional portfolios and a clear trend toward self-custody, the cryptocurrency may be on the brink of even further price milestones.