Bitcoin Supply on Exchanges Hits Three-Year Low, Sparking Fears of a Price Surge

2.5M Bitcoin Left on Crypto Exchanges Signals “Supply Shock”

According to Cointelegraph, Bitcoin reserves on cryptocurrency exchanges have dropped to a three-year low of 2.5 million BTC. This decline is attributed to increasing institutional demand, particularly from exchange-traded funds (ETFs). Analysts suggest that this reduction in supply could lead to a "supply shock," potentially driving Bitcoin prices higher as demand outpaces availability. Despite global trade tensions, Bitcoin has shown resilience, maintaining a price above $95,000, which analysts attribute to strong institutional interest and seller exhaustion.

However, the market faces challenges, including stagnating spot Bitcoin ETF inflows. On February 10, U.S. spot Bitcoin ETFs recorded net negative outflows of $186 million, reversing the previous day's $171 million inflows. Maintaining the $95,000 support level is seen as critical to avoiding significant downside volatility, with potential liquidations exceeding $1.52 billion if prices fall below this threshold.

Source: Cointelegraph (https://cointelegraph.com/news/2-5-m-bitcoin-left-crypto-exchanges-btc-supply-shock)

SEC and Binance Seek Pause in Lawsuit

Al Jazeera English reports that the U.S. Securities and Exchange Commission (SEC) and Binance have jointly requested a 60-day pause in their ongoing legal battle. This motion, filed in a federal court, is linked to the SEC's newly formed task force aimed at developing a regulatory framework for cryptocurrencies. The task force's work could potentially influence the resolution of the case.

This marks a significant shift in the SEC's approach to crypto enforcement under the Trump administration. Binance, which has faced allegations of inflating trading volumes and misusing customer funds, welcomed the pause, emphasizing its commitment to being a secure and trusted exchange. Critics, however, view the delay as a potential dereliction of duty by the SEC.

Source: Al Jazeera English (https://www.aljazeera.com/economy/2025/2/11/in-change-in-crypto-enforcement-sec-and-binance-seek-pause-in-lawsuit)

BestChange Faces Uncertainty Over Russia Block

Reuters reports that the cryptocurrency exchange platform BestChange is grappling with uncertainty following a block imposed by Russian authorities. The platform, which facilitates the exchange of cryptocurrencies, has not received clear communication regarding the reasons for the block. This development highlights the ongoing regulatory challenges faced by crypto platforms in Russia.

BestChange's situation underscores the broader tension between the growing adoption of cryptocurrencies and regulatory scrutiny. The lack of transparency in such actions raises concerns about the future of crypto operations in the region.

Source: Reuters (https://www.reuters.com/technology/crypto-exchange-platform-bestchange-dark-over-russia-block-2025-02-11/)

Bitcoin Records Largest Outflows Since FTX Crash

FX Empire reports that Bitcoin has experienced its largest outflows from exchanges since the FTX collapse in 2022. On February 5, 2025, over 47,000 BTC, valued at approximately $4.6 billion, were withdrawn from exchanges. This represents a 3% drop in Bitcoin's supply on exchanges, suggesting that investors are moving their holdings to private wallets for long-term storage.

Historically, such outflows have preceded major price rallies, with similar patterns observed in July 2024 and November 2022. Analysts believe that institutional investors and "whales" are accumulating Bitcoin in anticipation of a price surge. However, upcoming economic data and Federal Reserve policies could influence Bitcoin's trajectory, with inflation concerns and interest rate decisions playing a critical role.

Source: FX Empire (https://www.fxempire.com/forecasts/article/bitcoin-record-largest-outflows-since-ftx-crash-just-ahead-of-powell-testimony-1496783)

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