Bitcoin Hits $125K as Exchange Balances Drop to Six-Year Low

Bitcoin surged to a new all-time high above $125,700 on Sunday morning, breaking past its previous record of $124,500 set in August, according to data from CoinMarketCap.

Key Takeaways:

• Bitcoin hit a new all-time high above $125,700 as “Uptober” momentum kicked in.
• Exchange balances fell to multi‑year lows, with over 114,000 BTC leaving platforms in two weeks.
• Tightening supply and OTC desk chatter point to potential spot shortages if price fails to cool.

The milestone comes as centralized exchanges report the lowest levels of Bitcoin reserves in six years, signaling a tightening supply backdrop amid growing investor demand.

The sharp recovery marks a strong start to October, often dubbed “Uptober” by traders, after Bitcoin slipped to $107,800 in early September.

Over the past week, the asset has climbed steadily, buoyed by renewed optimism and tightening exchange liquidity.

“Bitcoin hits new all-time high … And most people still don’t even know what Bitcoin is,” said Nate Geraci, president of ETF Store and Nova Dius.

Bitcoin hits new all-time high…

And most people still don’t even know what bitcoin is.

Glassnode data shows the total Bitcoin held on exchanges dropped to 2.83 million BTC on Saturday, the lowest level since June 2019, when Bitcoin traded around $8,000 during a bear market.

CryptoQuant posted a slightly lower reserve figure of 2.45 million BTC, placing it at a seven-year low. More than 114,000 BTC, valued over $14 billion, has exited exchanges in just two weeks.

This mass outflow suggests a shift toward long-term holding, with Bitcoin moving into self-custody, institutional wallets, or digital asset treasuries.

Coins held on exchanges are considered “available supply,” more likely to be sold. As reserves dry up, upward price pressure builds.

“Hearing exchanges are out of Bitcoin,” tweeted Matthew Sigel, head of digital assets research at VanEck.

“Monday 9:30 am might be the first official shortage,” he added, cautioning that this wasn’t financial advice—but suggesting it might be time to act.

Hearing exchanges are out of Bitcoin.

Monday 9:30am might be the first official shortage.

Not financial advice… just: it might make sense to get some. https://t.co/yNSMEw2oms

Investor Mike Alfred echoed the sentiment, revealing a call with a major OTC desk operator who said they could run out of Bitcoin within hours of futures markets opening, unless the price breaks above $126,000. “Things getting wild,” Alfred said.

As reported, Bitcoin’s surge past $124,000 has driven Strategy Inc.’s BTC holdings to a record $77.4 billion, the company revealed Friday.

The firm, which began accumulating BTC in 2020 as a corporate treasury asset, has seen its holdings grow exponentially from an initial valuation of $2.1 billion to over 35 times that amount in just five years.

Strategy weathered the volatility of crypto markets with continued purchases during downturns, pushing its position to $8 billion in 2023 and more than doubling that to $41.8 billion by 2024.

The 2025 rally has now pushed it to unprecedented levels, reinforcing the firm’s conviction that Bitcoin is a long-term hedge against fiat depreciation.

In a further boost, Strategy confirmed it will not face billions in taxes on unrealized crypto gains after updated IRS guidance clarified that such gains are excluded from the Corporate Alternative Minimum Tax.

With around $28 billion in unrealized profit, the tax exemption cements Strategy’s position as the leading example of corporate Bitcoin accumulation.

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