Bitcoin Exchange Reserves Hit Record Low as Institutional Demand Surges

Bitcoin’s market outlook is showing a remarkable turnaround as the balance of BTC on exchanges hits an all-time low, according to data from CryptoQuant. This decline signals tightening supply and reduced trading liquidity, pointing toward a potential supply shock. With more investors transferring their Bitcoin holdings into long-term wallets, market scarcity continues to grow, a pattern that often precedes major price shifts.

Julio Moreno, head researcher at CryptoQuant, highlighted a strong surge in weekend Bitcoin spot demand, marking the first sustained increase since early October. This resurgence suggests renewed investor confidence and heightened market optimism despite recent volatility. Tight supply conditions paired with increasing demand indicate the market may be on the verge of a new bullish phase.

Supporting this momentum, stablecoin activity is also accelerating. Lookonchain reported that Tether recently issued another 1 billion USDT, contributing to a combined $11.75 billion minted alongside Circle over the past month. This influx of stablecoins adds liquidity to the crypto ecosystem, a move analysts see as a sign of growing capital inflows and trading volume expansion.

Meanwhile, Ethereum is drawing renewed attention from institutional investors. CryptoQuant’s Spot Order Size Data shows an uptick in average order sizes during Ethereum’s price dip to around $3,200—an indicator of whale accumulation. Historically, such behavior has preceded major rallies. With Ethereum maintaining key support between $3,000 and $3,400, analysts believe a phase of accumulation and low volatility could set the stage for a strong rebound.

Overall, the convergence of declining Bitcoin reserves, increasing stablecoin supply, and rising institutional activity underscores a shifting crypto landscape. Reduced exchange balances and growing liquidity are shaping a market primed for renewed upward momentum.