Why are investors preparing to accumulate bitcoin ?

Cryptocurrency Supply on Exchanges Hits Historic Low as Bitcoin Whales Accumulate

April 29, 2025

Investors Pull $5 Billion in Bitcoin Off Exchanges

Cryptocurrency traders have withdrawn over 111,000 BTC (worth approximately $5 billion) from exchanges in the past 30 days, driving the available supply of Bitcoin on trading platforms to its lowest level in history. This mass movement into cold storage suggests investors are preparing for a potential price surge, reminiscent of the bullish momentum seen in August 2021.

Mahmoud Khairallah, a digital currency specialist, explains:

"The outflow of Bitcoin from exchanges is a classic indicator of an impending price rally. When investors move coins into cold wallets, they signal long-term holding strategies rather than short-term selling. Conversely, when large amounts flood exchanges, it often precedes a market downturn as traders prepare to liquidate."

Bitcoin Whales Gobble Up Discounted Supply

Since Bitcoin’s crash from its all-time high of

$64, 000 * * t o * *$

Data from CryptoQuant reveals:

Over 111,000 BTC have been withdrawn in the past month.
Large transactions suggest institutional accumulation at lower price levels.

Khairallah notes:

"This trend isn’t new. Since late 2020, when Bitcoin bottomed at
$29, 000, w e ’ v e s e e n a s t e a d y i n c r e a s e i n h i g h - v o l u m e t r a n s a c t i o n s — r a n g i n g b e t w e e n$

Market Absorbs Sell-Offs as Profit Margins Expand

Despite volatility, Bitcoin’s market has demonstrated strong absorption capacity:

3.6 million BTC (over 19% of circulating supply) have been acquired profitably since 2020.
By July 2021, Bitcoin’s realized profits hit a record $379 billion.

Khairallah adds:

"The current profit trends mirror those before the 2020 bull run. If inflows continue, another major rally is likely. The market is clearly digesting sell pressure efficiently."

Institutional Demand Grows as Bitcoin Tests $49,000

Recent developments highlight increasing institutional interest:

Coinbase approved a $500 million corporate investment in cryptocurrencies, plus 10% of future profits.
Bitcoin surged 4% in 24 hours, breaking past $49,000—a key resistance level.

Khairallah observes:

"Approvals like Coinbase’s inject confidence. With a $52 billion market cap, their moves directly impact prices."

Bitcoin vs. Gold: A Shifting Safe-Haven Dynamic

A notable negative correlation has emerged:

Gold dropped 6% amid declining inflation expectations.
Bitcoin gained 65% in the same period.

"By late 2025, $100,000 Bitcoin is widely anticipated," Khairallah concludes. "We’re now in the middle of this accumulation phase."

(End of Report)

Key Takeaways

Exchange reserves at historic lows signal long-term bullish sentiment.
Whales are accumulating aggressively below $50,000.
Institutional adoption (e.g., Coinbase) supports price stability.
Bitcoin is decoupling from gold as a preferred inflation hedge.