Buyers on Binance have made a clear shift in recent weeks. The exchange’s seven-day net taker volume went from roughly -$1 billion in late March—when sellers were in control—to around $2.6 billion by early May, showing that demand had returned with some strength. Related Reading: XRP Market Now Controlled By Whales? Dominance Reaches 91% On Binance Reserves Hit Levels Not Seen Since Late 2023
This change in buyer behavior is happening as Bitcoin supply on major exchanges shrinks. Combined outflows from Binance, OKX, and Gemini have reached nearly 100,000 BTC since February—worth over $8 billion at current prices—pushing reserves to their lowest point in about two and a half years. Binance saw the biggest drop. Its holdings fell from around 670,000 BTC in late February to nearly 620,000 BTC by May 7, dipping below levels last seen in December 2023. OKX lost close to 30,000 BTC over a similar period, dropping from 132,000 BTC in early March to about 102,000 BTC. Gemini followed a similar trend, falling from 114,800 BTC in early February to 95,000 BTC.
According to a crypto analyst, a broad withdrawal across multiple platforms is more significant than outflows from just one exchange. When Bitcoin leaves several major exchanges at the same time, it points to a wider change in how holders are managing their coins—not just routine transfers between wallets on the same platform.
OTC Supply Tightens Alongside Exchange Withdrawals
The supply crunch isn’t limited to exchange order books. Over-the-counter desk balances—used by large buyers and institutions to move Bitcoin privately, outside of public markets—have also tightened. The 30-day OTC balance change turned negative, showing a net decline of about 24,940 BTC. That’s a sharp contrast to early February, when the same measure was at nearly +25,300 BTC after Bitcoin’s price dipped toward $60,000. This reversal indicates that fresh Bitcoin supply flowing into OTC channels has slowed down a lot since that earlier sell-off.
Accumulation Picks Up Among Long-Term Holders
Long-term holders increased their buying during Bitcoin’s recovery toward $82,800. Data from CryptoQuant shows that demand from accumulator addresses climbed to 264,000 BTC on May 6, up 60% from 164,440 BTC just two weeks earlier on April 23. The metric had bottomed near 100,000 BTC in mid-March before rebounding. Related Reading: Bitcoin Eyes $90K As Bears Get Burned Again Amid $30B Open Interest Surge
Accumulator addresses usually represent buyers who add to their holdings consistently and rarely sell—a group watched closely as a sign of confidence among experienced market participants.
Featured image from Unsplash, chart from TradingView
Frequently Asked Questions
Here is a list of FAQs about the Bitcoin supply shock event written in a natural conversational tone with clear and simple answers
BeginnerLevel Questions
1 What exactly is a Bitcoin supply shock
It means the amount of Bitcoin available for sale on exchanges suddenly drops a lot When fewer coins are available and demand stays the same or goes up the price usually goes up
2 Why did 100000 Bitcoin disappear from exchanges
People moved their Bitcoin off exchanges into private wallets They do this to hold onto their coins for the long term rather than leaving them on an exchange to trade or sell
3 Is 100000 Bitcoin a lot
Yes its a huge amount Its worth several billion dollars To put it in perspective its about 05 of all the Bitcoin that will ever exist When that much supply disappears in just 90 days its a big deal
4 Does this mean the price of Bitcoin is going to go up
Its a very strong signal that prices could rise Less supply steady or rising demand higher prices But its not a guaranteeother factors can also affect the price
5 Is this good or bad for regular people who own Bitcoin
For people who already own Bitcoin its generally seen as good news because it can push the price higher For people who want to buy Bitcoin it can make it harder or more expensive to get in
AdvancedLevel Questions
6 How do we know this 100000 BTC wasnt just moved to another exchange
Data from onchain analytics firms tracks exchange net flows They can see if Bitcoin is leaving all major exchanges and going to private addresses If it were just moving between exchanges the net flow would be close to zero
7 What is the main reason longterm holders are pulling Bitcoin off exchanges
The biggest reason is the expectation of a supply squeeze Many holders believe the price will be much higher in the future so they refuse to sell now They also want