Investors are making headlines in 2025 by transferring their Bitcoin $104,110 from centralized exchanges to private wallets. According to CryptoQuant data, the stock of Bitcoin on exchanges has reached its lowest level in five years, indicating a growing trend among retail and institutional investors towards long-term strategies that bolster confidence in the sector.
Massive Exodus from Centralized Exchanges to Wallets
In the first four months of the year, 16% of Bitcoin held on centralized exchanges has been transferred to private wallets. This figure signifies the withdrawal of approximately 500,000 Bitcoins, clearly showcasing that individual investors are opting for their own storage methods.
According to data provided by CryptoQuant, the total amount of Bitcoin on exchanges has decreased from 3 million to 2.5 million. This significant decline is linked to users wanting to enhance their security and gain direct control over their assets.
The increasing use of private wallets in the market is also expected to lead to reduced selling pressure during periods of volatility. Experts suggest that having fewer Bitcoins on exchanges could provide a protective effect against market fluctuations.
Strong Purchases from Institutional Investors
The trend of moving to private wallets is not confined to retail investors. Major asset managers like Fidelity are showing their commitment to the sector by making regular Bitcoin purchases in 2025. According to Fidelity, institutions are transferring their acquired Bitcoins directly to their secure storage solutions without leaving them on exchanges.
Cas Abbé emphasizes that the stock of Bitcoin on centralized exchanges has dropped to its lowest level since the third quarter of 2018. Currently, only about 2.5 million Bitcoins remain on exchanges.
The growing institutional demand is creating expectations of upward pressure on prices by limiting market supply. Experts believe that long-term holding strategies could initiate a new period of stability in the market.
During a time of fluctuating economic conditions, investors’ shift to private wallets based on their risk analyses is seen as a strong indicator of the cryptocurrency market maturing. The strengthening of long-term strategies also keeps hopes alive for broader future applications of cryptocurrencies.