Bitcoin Exchange Supply Hits 7-Year Low as Long-Term Holders Dominate Market

Bitcoin’s presence on crypto exchanges has reached its lowest level in over seven years, signaling a shift toward long-term holding behavior among investors.

According to data from Santiment, only 7.53% of Bitcoin’s total supply is currently held on exchanges—the lowest ratio since February 20, 2018.

In a recent note, Santiment analyst Brian Quinlivan explained that this drop in exchange supply reflects reduced short-term sell pressure.

Quinlivan added that when coins move off exchanges into cold storage or custodial solutions, it typically indicates that holders are not planning to sell in the near term.

This trend can help insulate the market from sudden downturns, as fewer coins are readily available for spot selling.

Historically, lower exchange balances have been associated with bullish market conditions, as they suggest confidence in Bitcoin’s long-term value.

“Additionally, the diminishing exchange supply signals growing interest from institutions and long-term custodial solutions,” he wrote.

With more BTC flowing into secure custodial storage, market participants are increasingly viewing Bitcoin as a long-term store of value rather than a tool for speculative trading.

Bitcoin's ratio of supply on exchanges has officially dropped to as low as 7.53%, the lowest since February 20, 2018. The 7-year milestone reflects a continued trend of investors of crypto's top asset feeling comfortable 'hodling' for the long-term, regardless of short-term… pic.twitter.com/m7d6Yon5HR

At the time of writing, Bitcoin is trading at $87,529, largely flat over the past day.

The leading cryptocurrency is down by around 20% compared to its all-time high of $109,114 registered in January this year, according to data from CoinMarketCap.

Corporate interest in Bitcoin is showing no signs of slowing down, as several major firms ramp up their holdings amid growing institutional confidence in the digital asset.

France-based tech firm The Blockchain Group recently announced the purchase of 580 BTC, its largest acquisition to date, bringing its total holdings to over $50 million.

Likewise, Japanese investment firm Metaplanet added another 150 BTC to its reserves earlier this week, continuing its steady buying strategy amid market volatility.

The latest addition brings the firm’s total Bitcoin reserves to 3,350 BTC, accumulated at an overall cost of ¥42.22 billion ($270 million).

GameStop also jumped into the fray, revealing plans to raise $1.3 billion through a convertible debt offering.

The funds will be used in part for Bitcoin purchases, making the company one of the latest high-profile entrants in the corporate crypto space.

At the forefront of institutional adoption is Michael Saylor’s firm Strategy, which now holds 506,137 BTC — more than any public company.

These purchases come amid a growing wave of similar legislation nationwide.

So far 41 Bitcoin reserve bills have been introduced in 23 states, with 35 still under consideration.

Just recently, Kentucky Governor Andy Beshear officially signed House Bill 701, known as the “Bitcoin Rights” bill, into law—making the state one of the latest to enact legislation protecting digital asset users and operations.

Furthermore, two key Bitcoin bills in Arizona cleared the House Rules Committee on March 24.

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