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Bitcoin Exchange Supply Crashes to 2.56M BTC in Sharpest Drawdown Since 2020

Bitcoin’s (BTC) Exchange Flux Balance has dropped to 2.56 million BTC. This is one of the lowest levels seen since 2020, according to the latest analysis by Alphractal.

This is fueling fresh accumulation speculation, but there could be another major force at play.

Exchange Supply Shrinks Fast

The metric measures the cumulative net flow of Bitcoin across exchanges over time. It rises when more BTC is sent to exchanges than withdrawn, which can indicate growing sell pressure, and falls when more coins move off trading platforms into self-custody or off-exchange storage, often linked to accumulation behavior.

This indicator reflects the long-term balance of Bitcoin held on exchanges rather than short-term market activity. In previous instances, the metric reached around 3.15 million BTC during the early 2020 peak before falling to nearly 2.6 million BTC in mid-2022 amid the market turmoil following the Luna collapse and FTX crisis, when investors rapidly withdrew funds from exchanges.

The balance later climbed above 3 million BTC during the late 2024 and early 2025 bull market cycle as inflows increased again.

Over the last 12 months, however, the balance has steadily declined from about 3 million BTC to the current 2.56 million BTC level. This represents an estimated drop of roughly 440,000 BTC. Alphractal described the decline recorded through 2025 and 2026 as one of the sharpest drawdowns in the dataset.

There are two possible interpretations of the trend. One view suggests that continued exchange outflows point to longer-term holding behavior, as previous periods of compression in the metric were later followed by price recoveries. Another interpretation is that Bitcoin may simply be moving into alternative custody structures such as ETFs, institutional vaults, or OTC desks that are not reflected in the same on-chain data.

Strategy Buys Again

The trend also comes as institutional Bitcoin accumulation continues to expand. Strategy, for one, has continued adding BTC to corporate reserves. The Michael Saylor-led business intelligence firm acquired 1,587 BTC for approximately $100 million. Its total Bitcoin holdings have now climbed to 846,842 BTC, worth nearly $56 billion at current prices.

This followed Strategy’s first Bitcoin sale in nearly four years, a move that rattled the broader crypto market.

Pranešimas Bitcoin Exchange Supply Crashes to 2.56M BTC in Sharpest Drawdown Since 2020 appeared first on CryptoPotato.


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