- Bitcoin price hit a record $113,923, lifting many altcoins in its wake.
- Despite the new BTC high, exchange reserves continue to decline.
- Investors’ reluctance to sell even after the price surge signals strong confidence in Bitcoin’s future performance.
Bitcoin (BTC) soared to a new all-time high of $113,923, sparking renewed upward momentum across the broader cryptocurrency market.
Even as BTC climbs higher, analysts note that market participants are not rushing to cash in. Holders continue to withdraw coins from exchanges, extending a trend that has persisted for months and suggesting a growing preference for long-term storage and self-custody over short-term trading.
Notably, Bitcoin has risen more than 98% over the past year and is up over 13% since its recent lows in June.
While many altcoins have experienced turbulence and profit-taking, Bitcoin holders have notably refrained from returning coins to exchanges. This shift toward long-term holding and self-custody is broadly interpreted as bullish for BTC, which now appears to be targeting the $120,000 level next.
Exchange BTC balances fall despite Bitcoin’s new ATH
Despite Bitcoin’s dramatic rise to its latest all-time high of $113,923 on Thursday, July 10, 2025, exchange balance metrics continue to decline.
Data from Santiment highlight a significant drop in the amount of BTC held on exchanges, with a net outflow of 315,830 BTC over the past four months.
That represents a 21% decline in net exchange balances, a trend that has been unfolding for months.
In fact, BTC exchange reserves are sitting at levels not seen in years.
An impressive 1.88 million BTC have left exchanges since July 2020, a reduction of about 61%.
“Overall, the trend of coins staying off exchanges indicates a reduced risk of sudden market crashes, and long-term holders are increasingly comfortable keeping their coins stored safely in personal custody,” the platform wrote on X.
This decline points to a potential supply shock: fewer coins available on exchanges could limit rapid sell-offs while helping to support higher prices.
Bitcoin holders in no rush to sell
Santiment’s bullish outlook aligns with findings from CryptoQuant, which noted on X that Bitcoin exchange balances are at a seven-year low.
Exchange-held BTC has fallen below 15% of the total supply for the first time since 2018. Like Santiment, CryptoQuant interprets this scarcity as a bullish sign for price discovery.
“Bitcoin has reached an all-time high, but selling pressure is nowhere to be seen,” the platform wrote. “Exchange inflows have dropped to just 18,000 BTC/day, the lowest since 2015… That’s a 78% decline compared to the inflows seen during the $100,000 breakout in November. Holders are not rushing to sell.”
Analysts say the reluctance to return BTC to exchanges reflects a broader uptrend and an increasing preference for private storage. This behavior is especially pronounced among long-term holders, many of whom appear content to keep their assets offline indefinitely.
As exchange reserves remain low and demand continues, the market may face upward price pressure that could sustain Bitcoin’s rally in the near term. Observers will be watching wallet flows, on-chain metrics, and macro conditions to gauge how long this supply-tightening dynamic can support further gains.