According to the source, BTC supply on centralized exchanges has reportedly declined to a 7-year low, source: social media post dated Sep 15, 2025. Historically, declining exchange balances correlate with reduced sell-side liquidity and stronger spot-led price resilience in BTC, source: Glassnode Research, Exchange Balances and Market Regimes 2022. Traders should confirm the claim by checking Exchange Balance, Exchange Net Position Change, and Illiquid Supply metrics before positioning, source: Glassnode; CryptoQuant. If metrics confirm continued outflows, strategies often favor a buy-the-dip bias while monitoring funding rates and basis to avoid crowded longs, with invalidation if net inflows turn positive, source: Binance Research; CME Group; Kaiko.

According to @Andre_Dragosch, the recent decline in BTC exchange balances is primarily attributed to corporate acquisitions of bitcoin rather than ETF inflows. This trend represents 'sticky capital,' as corporations like MicroStrategy (MSTR) are generally price agnostic and focused on long-term accumulation, rarely selling their holdings. Traders should note that this pattern could reduce available BTC supply on exchanges, potentially impacting liquidity and price volatility. Source: @Andre_Dragosch on Twitter, April 27, 2025.

According to AltcoinGordon, Bitcoin exchange balances have plummeted to their lowest levels since late 2018, signaling a potential supply shock that could significantly impact market dynamics. This decrease in exchange-held Bitcoin suggests a trend of long-term holding, which could lead to reduced liquidity and increased price volatility. Traders should be aware of these developments as they may influence trading strategies, especially in anticipation of possible price surges due to limited supply. Monitoring exchange balances can provide insights into market sentiment and potential price movements.