Bitcoin Exchange Supply Crashes to 1.8M Amidst Price Rally

In Brief

• Bitcoin’s recent price rally aligns with a sharp drop in exchange reserves, showing whale accumulation.
• Analysts view the declining supply on exchanges as a bullish long-term indicator.
• Bitcoin is holding above key levels amid positive sentiment, though some volatility is expected.

Bitcoin started an upward move a few days ago after a long time of correction. This rally has coincided with a sharp decline in the amount of Bitcoin on exchanges, which tells an interesting story about what investors are doing.

Data shared on X reveals that the Bitcoin reserves on Binance — which represents the bulk of Bitcoin’s trading volume — has declined massively in November from about 2.4 million to 1.8 million and is still dropping.

What Declining Bitcoin Reserves Entails

A decline in the number of Bitcoins on centralized exchanges like Binance is a critical indicator of investor sentiments. It usually shows that investors — majorly large holders – are withdrawing their coins to personal wallets to hold for the future. According to the analyst who shared the data, the whales are buying up more Bitcoin and stacking up while retailers sell.

Retail weak hands parting with cheap $BTC to whales!

— Rand (@cryptorand) November 28, 2025

Such action is considered bullish since it demonstrates the whales’ confidence about a price surge in the future. According to analysts, this is a bullish long-term signal which will translate into price eventually. It is estimated that only 10-20% of total Bitcoin supply is still on exchanges, and as supply shrinks, price response is expected to be positive.

$BTC SUPPLY ON EXCHANGES IS FALLING FAST

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Less Bitcoin available to sell = BULLISH

This is one of the strongest long term signals.

SEND IT HIGHERRRR!!! pic.twitter.com/N4fJaaDJn8

— Money Ape (@TheMoneyApe) November 26, 2025

On the other hand, rising volumes indicate growing selling pressure which eventually leads to price crash and higher volatility according to on-chain analytics firm CryptoQuant. With the decreasing volume and rising price, Bitcoin may be set to reach higher prices in the short-term as predicted by analysts.

Bitcoin Holds $91,000 Amidst Bullish Sentiment

As the volume of Bitcoin on exchanges continues to decline, positive sentiment remains in the market and Bitcoin continues to hold above $91,000 ahead of the upcoming Options expiry which is expected to cause some turbulence.

Analysts expect that a successful holding of this level will set the stage for the next leg up, but the increased volume on options platforms like Deribit may lead to some volatility after the options expiry.