Bitcoin reserves on centralized exchanges have decreased to record low levels as prices surged above $106,000. This phenomenon aligns with geopolitical tensions, particularly between Israel and Iran.
Exchange Reserves Plummet
Bitcoin reserves on exchanges have fallen from an all-time high of over 3.2 million BTC in July 2024 to around 2.4 million BTC in June 2025, indicating a decline of over 800,000 BTC. This decrease coincided with the price of Bitcoin rising from below $60,000 to all-time highs above $110,000, suggesting increased demand from investors.
Whale Activity Confirms Bullish Narrative
Whale investors have continued to build their Bitcoin exposure during this cycle. According to Coinvo analysis, addresses with substantial holdings increased from 3.2 million to over 3.45 million BTC as of May 2025, adding over 250,000 BTC since June 2024. This accumulation occurred alongside the price surge of Bitcoin, indicating coordinated purchases by institutional and high-net-worth investors.
Network Health Supports Market Strength
The average weekly Bitcoin hashrate reached 939.1 EH/s in June 2025, up from 650 EH/s in July 2024. The mining difficulty at 126.41T reflects high competition and significant miner activity. These indicators have consistently increased since the latter half of 2024, supporting growing miner confidence in long-term profitability.
Bitcoin continues to exhibit resilience amidst global geopolitical tensions. The decline in exchange reserves and increased whale activity confirm a bullish market outlook, while the rising hashrate signals network health. This may indicate a shifting perspective of Bitcoin as a more stable asset during uncertain times.
