Exchange Bitcoin Supply Drops to 2.67M — Is a Rally Next?

As the supply of the leading cryptocurrency sitting on exchanges shrinks, bitcoin could be in line for a price increase.

In a Monday report, a researcher at data firm CryptoQuant wrote that bitcoin held on exchanges has fallen to 2.67 million from 2.8 million since February.

Bitcoin recently changed hands at $83,485, flat over the previous day and 8% higher over the last month after its strongest quarter in years. Several analysts have now declared the bear market over following the rally in August and September.

The report from on-chain researcher Rei Researcher said: “If buying demand continues to improve while exchange supply remains low, BTC could benefit from a supply-demand imbalance, creating favorable conditions for a longer-term upward trend.”

The report continued: “More importantly, in recent weeks, bitcoin has recovered from its lows while exchange reserves have continued to decline. This is a notable development, suggesting that the supply readily available for trading is decreasing even as the market recovers.”

The report also floated the possibility that investors were pulling bitcoin off exchanges and placing it in cold storage.

For much of the first half of 2026, bitcoin traded below $65,000. After reaching an all-time high of $126,080 in October 2025, the cryptocurrency spent most of the year in a bear market.

August changed that. Word that the U.S. Treasury would double the size of its liquidity-support buyback operations weakened the dollar while boosting bitcoin and other non-yield-bearing assets.

The so-called debasement trade, in which investors pile into an asset to protect against a currency losing value, is popular once more. Bitcoin is again benefiting from that trade, analysts say, just as it did in 2024 and 2025.

The leading cryptocurrency remains more than 30% under its all-time high.