Crypto Market Update: Bitcoin Exchange Reserves Hit 7-Year Low

05 Jun, 2025

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Expertise : Crypto News & Market Analysis, Content Strategy & SEO Writing

Pooja Khardia is a seasoned crypto content writer with 6+ years of experience in writing, including in blockchain, cryptocurrency, DeFi, and digital finance reporting. In her adventure journey, she is currently working with CoinGape Media and leading their Trending Section. Here, she uses her expertise to deliver analytics, market insights, price predictions, and information on what’s trending in the crypto space, aiming to keep the crypto and web3 community updated with market trends and important insights. Known for a user-centric and straightforward writing style, Pooja is passionate about making crypto easy and accessible. Her writing blends market research with storytelling, helping readers stay ahead in a fast-paced industry. When not behind the keyboard, Pooja embraces her creative side through drawing and crafting. Connect with Pooja on LinkedIn or X.

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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Crypto Market Update: Bitcoin Exchange Reserves Hit 7-Year Low

Highlights

Bitcoin price consolidation is triggering a broader crypto market correction.
Despite the dip, Bitcoin exchange reserves are at a 7-year low, signaling bullish sentiments.
Analysts expect a short-term bearish movement down to $100k, but remain bullish for the long term.

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Despite hitting an ATH days earlier, the Bitcoin price is consolidating below $105k, impacting the broader crypto market for the worse. Due to its high dominance and impact on the rest of the digital asset, the entire cryptocurrency market is consolidating and even crashing at times. Interestingly, despite the drop, the Bitcoin exchange reserve hit a seven-year low, which is bullish for crypto. Let’s discuss.

Crypto Market Crash as Bitcoin Exchange Reserve & Price Tank

Bitcoin price is fluctuating between $104k-$105k and is failing to break the $107k crucial resistance. The dip began with last week’s Bitcoin ETF outflows and declining investors’ greed sentiments. Moreover, the retail buyers’ activity was also low, fueling a crypto market crash today.

As Bitcoin hit $104.3k earlier in the day, the rest of the altcoins followed along, bringing a crash-like condition. Ethereum declined to $2,588, XRP price touched $2.18, and the same is true for the rest of the altcoins.

Interestingly, XRP is at the brink of a potential crash to $1.17 as its price chart shows the formation of a bearish inverted cup and handle pattern. However, crypto analyst Muthoni adds that despite the XRP crash odds, social dominance hints at trend reversal.

Besides, the BTC price recovery to $105.7k and the exchange reserve hitting a seven-year low hint at an upcoming rally.

Bitcoin Exchange Reserve Crash to $1.19M, What’s Next?

Although the Bitcoin price is consolidating, the long-term outlook remains bullish, as explainable by the exchange reserve falling to the 7-month low. According to Santiment reports, the BTC held on exchange dropped to 1.19M BTC, the weakest in the past seven years.

This drop signals that the investors are moving their holdings from exchanges to private wallets. i.e, strong long-term holding sentiments. Besides, historical reports show that such action brings bullish momentum in the broader crypto market.

Interestingly, a short-term bounce possibility is also opening, which could push the BTC price to $107.7k. However, in a different context, a bearish structure is emerging.

Crypto analysts’ Bitcoin price prediction reveals that a potential downside to $101k or even $100k could form before forecasting a bearish bias for June, but a bullish bias for 2025.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Frequently Asked Questions (FAQs)

1. Why is the Bitcoin price consolidating?

Bitcoin price tanked due to recent ETF outflows and a decline in investor activity.

2. How is the Bitcoin price movement affecting the overall crypto market?

The Bitcoin price consolidation is fueling the crypto market correction.

3. How much is the current Bitcoin exchange reserve?

The Bitcoin exchange reserve holding is at a 7-year low of 1.19M BTC.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.