Bitcoin News

Story: Bitcoin Supply at 7-Year Low Amid Rising Demand

By MikeT

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Bitcoin [BTC] is once again drawing attention across the crypto landscape—this time, not because of price volatility, but due to a major shift in its underlying market dynamics.

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As of July 2025, only 14% of Bitcoin’s total circulating supply remains on centralized exchanges, marking a sharp 9.4% drop in just the past month.

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Historically, such sustained outflows from exchanges have often preceded major bullish moves. Why?

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Despite some price choppiness, Bitcoin bulls have shown renewed conviction. A strategic short liquidation worth $40 million near the $104,984 level recently fueled an intraday…

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But this recent move isn't just about liquidations. Under the surface, there's a more important narrative taking shape: Bitcoin’s liquidity is drying up, while spot demand is…

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A deeper dive into volume data shows that the spot-to-derivatives trading volume ratio has been rising after hitting a seven-month low in late May.

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Back in May, Bitcoin reached its all-time high during a period when this ratio was at just 0.

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Now, however, the market appears to be on firmer footing. With 86% of BTC now off exchanges and more trading activity coming from spot buyers, Bitcoin may be in the early stages…

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Still, analysts caution that while the structural conditions are in place for a rally, one key catalyst is still needed: confirmation that demand is not only returning but…

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Looking ahead, all eyes will be on the next few weeks. If exchange supply continues to drop and spot volumes keep rising, a classic supply squeeze scenario could play out.

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In simpler terms, Bitcoin may be coiling up for its next explosive move. With its liquid supply at a multi-year low, and long-term holders firmly in control, the market may soon…

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For now, Bitcoin continues to trade in a tight range, but behind the scenes, fundamental forces are aligning.

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