Fidelity Reports Bitcoin Supply on Exchanges Hits 2018 Low

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At a critical moment, Fidelity Digital Assets reported that Bitcoin’s supply on exchanges is at its lowest since 2018, driven by institutional purchases.

This event underscores the growing institutional trust in Bitcoin, indicated by sustained public company acquisitions and aligned ETF approvals, generating a sharp market response.

Fidelity Digital Assets highlighted that the Bitcoin supply decline results from strategic public company purchases. “We have seen Bitcoin supply on exchanges dropping due to public company purchases — something we anticipate accelerating in the near future,” stated Fidelity Digital Assets. Nearly 350,000 BTC have been acquired by these entities since November. MicroStrategy, a leader in this trend, purchased 285,980 BTC. These acquisitions contribute to the multi-year low Bitcoin supply on exchanges.

Public companies, including Metaplanet and HK Asia Holdings, are reinforcing their Bitcoin treasury strategies. Fidelity anticipates that this institutional interest will sustain or even grow, particularly with US spot Bitcoin ETFs reporting robust daily inflows. This supply reduction is linked to Bitcoin’s current trading price, over $93,000, doubling since November 2024.

Bitcoin’s withdrawals exceed 425,000 BTC, reflecting a shift towards self-custody and long-term holding. With over 2.6 million BTC now left on exchanges, this is the lowest level since 2018, asserting institutional adoption marked by evolving regulatory landscapes.

Institutional trust in Bitcoin grows with ETF approvals and regulatory clarity. Historical patterns suggest that such supply squeezes drive price appreciation, with experts foreseeing similar outcomes amid continued institutional accumulation. Analyst conclusions indicate that Bitcoin could maintain its upward trajectory, drawing from historical precedents of parallel events leading to substantial price rallies.