Bitcoin reserves on centralized exchanges have fallen to their lowest level since 2019, with a significant outflow following the FTX collapse. Analysts state this trend is accelerating due to the rise of spot Bitcoin ETFs and corporate treasury holdings, which are locking away a growing share of the total supply. Concurrently, price action remains influenced by geopolitical tensions.
Bitcoin reserves on centralized exchanges have dropped to levels last seen in 2019, according to data shared by market analyst Dark Fost. The decline has accelerated since the collapse of the FTX exchange in November 2022.
Over 325,000 BTC were withdrawn from exchange reserves in that month alone. Total accessible reserves now stand at approximately 2.7 million BTC, with Binance holding around 20%.
Dark Fost stated that spot Bitcoin ETFs and corporate treasury companies have significantly contributed to the drain. Combined, these entities now control roughly 2.4 million BTC, removing it from general exchange liquidity.
“Over the long term, this transformation could play an important role in market liquidity and price formation, even if these structural effects always take time to fully materialize,” the analyst noted. This shift represents a fundamental change in how Bitcoin supply is held.
Amid these structural changes, Bitcoin’s price failed to hold above $70,000 as geopolitical tensions created market uncertainty. Trader Michaël van de Poppe noted that Bitcoin’s performance has remained relatively strong despite broader market declines.
Van de Poppe observed a significant surge in oil prices alongside declines in gold and the Nasdaq. He suggested that a correction in oil and a higher U.S. stock market open could provide momentum for Bitcoin to retest the $70,000 level.
