Bitcoin’s supply on exchanges has hit a historic low, prompting speculation about a potential surge in market volatility. Data from CryptoQuant indicates that as of late May 2025, less than 2.5 million BTC are held across all centralized platforms. This decrease coincides with a significant price rally, reaching an unprecedented high above $111,500. 🧐 📈
Interestingly, the price surge has outpaced the decline in exchange reserves. A closer look reveals a distinct divergence between these two factors on CryptoQuant’s chart, where price increases are depicted by a white line going upwards while reserve amounts trend downwards on a blue line.
Historically, this pattern has been associated with Bitcoin price spikes when supply on exchanges decreases significantly. This dynamic suggests the market may be entering a new phase characterized by potentially sharper moves in either direction due to limited supply.