- 2025 has seen a significant portion of Bitcoin held on exchanges moved to self-custodial wallets.
- According to data from CryptoQuant, supply of BTC on exchanges is its lowest since 2019.
- Approximately 500,000 Bitcoins have been transferred to wallets in the first few months of 2025.
- On top of this, institutional demand is lifting after a slower start to the year.
Bitcoin’s strongest week of 2025 has been capped off by exciting news for long-term holders – a global supply crunch could be coming.
According to CryptoQuant, the amount of BTC available on centralised exchanges has fallen to its lowest point in over five years.
In the first four months of the year, 16% of all Bitcoin held on CEXs has been moved to self-custody, falling from 3 million to 2.5 million.
This trend of holding BTC via non-exchange wallets has been building since 2023, but significantly accelerated at the close of last year.
The move suggests an influx of longer-term holders entering the market, while other, more active traders, may have been weathering the economic storm introduced by Trump’s tariffs.
Additionally, the numbers indicate improving literature around the crypto sector, with more and more investors understanding how to use self-custodial wallets, and the benefits of doing so.
Related: Saylor Says Atkins Good for Crypto as Commissioner Peirce Signals New SEC Direction
Institutional Buying Ramps Up as Investors Seek Bitcoin Exposure
The average retail investor choosing to store their BTC in a non-CEX wallet will hardly cause a supply squeeze.
But institutional investors doing the same thing might.
Those who follow the industry will know about players like Michael Saylor and Microstrategy buying up an obscene amount of BTC as part of a corporate investment strategy.
That’s not to mention the growing ownership of spot BTC ETFs – which recently recorded one of their best days on record in terms of net inflows.
Just last week, asset managers Fidelity picked up a hefty $253 million USD ($396 million AUD) worth of BTC. And this kind of big-ticket purchase is a constant from major institutions involved in the space.
While some OG crypto investors aren’t pleased with the entry of institutions, there’s no denying they’ve banged the door down and pushed Bitcoin adoption to new heights.
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