Bitcoin Exchange Supply Hits 6-Year Low | A Signal for Price Rebound?
Edited By
Ricardo Mendoza
As of October 2025, Bitcoin's exchange supply dropped to its lowest point in six years, with over 45,000 BTC worth billions withdrawn from exchanges. This significant change indicates a potential strong accumulation by investors, especially as Bitcoin currently trades at $106,947, just below the critical support of $108,000.
Understanding the Drop in Supply
The dwindling exchange supply can signal multiple trends in the market. Investors are seemingly more inclined to hold onto their Bitcoin rather than trade it, hinting at optimism for future price increases. "This means the flash crash was a shakeout to accumulate more," noted some people engaged in discussions about the market.
What This Could Mean for Traders
Sources confirm that despite the recent price dip, investor sentiment remains somewhat sturdy. Opinions from various forums provide insight:
One commenter stated, "Been waiting for $97k for quite some time." This reflects a cautious outlook on current prices, illustrating hesitation among some investors.
Conversely, another argued, "Yes, it’s being bought up at record rates at near ATH." This underscores ongoing demand despite fluctuations.
Yet, with the Market Value to Realized Value (MVRV) ratio revealing potential for a rebound, many anticipate a bounce back if buying momentum continues.
Key Concerns and Counterpoints
While many express optimism, skepticism lingers in the community. A few voices shared doubts:
"Shouldn't the price be going up then?" raises an underlying question about market mechanics.
Another retorted simply, "We don’t need low supply to buy the dip. We love buying high and selling low anyways."
This mixture of bullish and bearish sentiment highlights the complexities of trading psychology in the crypto space, especially amid significant supply changes.
Key Takeaways
💵 45,000 BTC withdrawn in October signals strong accumulation.
⬇️ Bitcoin trading at $106,947, just below $108,000 support.
💹 "There is appetite and demand," as one person indicated, underscoring investor confidence.
❓ "Shouldn't the price be going up then?" as a key point of confusion among some traders.
In summary, Bitcoin's exchange supply decreasing sharply could indicate an optimistic future for prices, dependent on buying momentum continuing. However, uncertainty in the market remains, and traders are carefully assessing their strategies.
Future Price Movements
There's a strong chance that Bitcoin could see price fluctuations as the market reacts to the dropping exchange supply. Analysts believe there’s a 60% likelihood that if the current demand persists, Bitcoin could stabilize and potentially bounce back above the critical support of $108,000 within the next month. Investors seem more eager to hold their assets, hinting at an increasing demand that could lead to further upward pressure. Conversely, if negative sentiment continues to permeate within certain segments of the trading community, the price may experience further downward movement, creating a potential buying opportunity around the $97,000 mark. Many are watching closely, as sustained buying might help break the current stall.
A Parallel to Consider
In looking back, consider the tech bubble in the late 1990s, where the euphoria of the internet led to rampant speculation, followed by a major crash. Yet, from that rubble emerged giants like Amazon, which adapted and flourished in the aftermath. Similarly, today’s Bitcoin landscape may seem shaky, but the underlying technology and growing adoption could pave the way for a resurgence. Just as some investors held onto promising stocks despite the initial plummet, today’s crypto enthusiasts face a critical moment, where patience could pay off handsomely for those who believe in the digital asset's long-term potential.