Recent data reveals that Bitcoin’s supply on exchanges has dipped below 11%, marking its lowest level since March 2018. This trend is attributed to the accelerating withdrawal of BTC from public exchanges by institutions. The post-FTX market shift further emphasizes this trend, with investors increasingly opting for self-custody and alternative platforms. A recent analysis highlights a notable increase in institutional Bitcoin holdings, exceeding previous highs. 1.26 million BTC have been withdrawn from exchange wallets since March 2020, contributing to this supply reduction. This coincides with a growing demand for institutional custody solutions offered by companies like Blackrock and Fidelity, which are attracting significant investments instead of relying on traditional exchanges. This trend is likely driven by the market’s increased confidence in self-custody, as shown by a sustained decline in exchange flows since November 2022. This shift signifies a growing trust in alternative solutions and highlights the impact of events like FTX collapse on Bitcoin trading patterns.