Key Takeaways
- CryptoQuant reports a 14% drop in bitcoin exchange reserves since January 2025, now at 2.5 million BTC.
- OTC desk balances linked to miners have fallen 19% this year, reaching a historic low of 134,252 BTC.
- Negative futures funding rates alongside rising prices signal potential for increased volatility if liquidity remains tight.
Bitcoin’s price has continued to climb even as trading volumes reach their lowest point since the start of the 2023–2026 cycle and retail investor activity remains muted.
According to onchain analytics firm CryptoQuant, the real story lies beneath the surface—a significant drop in bitcoin held on both exchanges and OTC (over-the-counter) desks.
Exchange balances hit multi-year lows
CryptoQuant data shows that since the beginning of 2025, bitcoin balances on centralized exchanges have fallen by 14%, dropping to just 2.5 million BTC—a level not seen since August 2022. This trend suggests investors are moving coins to cold storage or custodial wallets, reducing the liquid supply available for trading.
As a result, short-term selling pressure is weakened, with large holders often withdrawing coins after purchases, signaling accumulation.
“Currently, those reserves are at historic lows. According to CryptoQuant, OTC addresses associated with miners have seen a 19% drop in balances since January, now holding just 134,252 BTC.”
OTC desk reserves and funding rates
OTC desks, which facilitate large bitcoin trades outside exchanges, are also witnessing a steep decline in reserves.
CryptoQuant finds that since January, OTC address balances tied to miners have dropped 19%, now totaling 134,252 BTC. This contraction in available liquidity means any increase in demand could lead to outsized price moves.
Meanwhile, funding rates in bitcoin perpetual futures recently turned negative, even as bitcoin surged from $104,000 to $110,000 between June 6–8. Historically, such a combination has preceded significant price rallies, highlighting the risk of volatility if short positions are liquidated in a thinly supplied market.
