Bitcoin’s exchange reserves have been dwindling massively in recent days. Coins are moving off exchanges at a steady pace, removing available supply ready for purchase.Â
Recent on-chain data from CryptoQuant shows that Bitcoin balances on exchanges continue to decline and are moving into stronger hands. On the other hand, data tracking the percentage of Bitcoin supply in profit shows that only about half of the addresses are in profit.
Bitcoin Is Disappearing From Exchange Order Books
CryptoQuant data tracking Bitcoin exchange reserves across all platforms shows the aggregate balance has fallen to approximately 2.671 million BTC as of April 24. Notably, reserves in exchanges have fallen from 2.68 million BTC on April 19, with the sharpest leg of the drawdown occurring during Bitcoin’s price climb above $77,700.
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Whenever Bitcoin leaves exchanges, it reduces the liquid supply available for immediate selling. This kind of supply reduction will always support price strength, especially when there is enough demand.
Bitcoin’s exchange reserves have continued falling throughout the cycle, even as prices corrected. However, perhaps the most telling development lies in how Bitcoin ownership is changing beneath the surface.
CryptoQuant’s STH/LTH Supply vs. ETF Flows data, which tracks 30-day position changes across participant cohorts, reveals a decisive redistribution of Bitcoin ownership from weaker hands to stronger ones.
Over the last 30 days, long-term holders have added 303,000 BTC to their positions. Bitcoin ETFs have absorbed a net 16,800 BTC in inflows. Strategy has also added 53,000 BTC to its holdings over the same period.Â
Meanwhile, short-term holders, the cohort most sensitive to price movements and most likely to sell into strength or panic on weakness, have reduced their aggregate position by about 290,000 BTC.
Only Half Of Bitcoin Supply Is In Profit
Even as Bitcoin is being taken off crypto exchanges, profitability metrics show a more subdued outlook of how many investors are currently making money. On-chain data shows the seven-day moving average of the percentage of BTC supply in profit is currently at 52.3%, according to insights from The Block.
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At its peak, above $126,000 in October 2025, 99.66% of the supply was in profit. The drop to near 50% is a reflection of the impact of the correction that followed, bringing a large portion of the market back to breakeven levels. Still, Bitcoin’s recent rally above $77,000 pushed many more holders into profit. Only about 44.1% of the Bitcoin supply was held in profit on April 2.
Readings above 90% are a reflection of late-stage bull markets. Therefore, based on that context, the current reading of 52.3% can be viewed through a bullish lens.Â
The three data streams (declining exchange reserves, net accumulation by long-term holders and institutions) and a supply-in-profit reading at the midpoint show Bitcoin is currently in a period of consolidation.
Featured image from Getty Images, chart from Tradingview.com