Bitcoin’s exchange reserves have dropped to an all-time low, raising expectations for increased price volatility.
According to CryptoQuant, reserves fell below 2.6 million BTC in late May 2025, even as Bitcoin hit a new high above $111,500.
This shrinking reserve often sparks major price moves. A falling reserve combined with rising prices shows growing demand and reduced selling pressure. Analysts see this trend as a key signal for a possible market breakout.
Bitcoin Exchange Reserves At All Time Low In May 2025
Source: CryptoQuant
Institutional buying plays a major role. Strategy added 7,390 BTC in May, boosting its total to 576,230 BTC about 2.75% of the total supply. GameStop and Japan’s Metaplanet also ramped up their holdings, while spot Bitcoin ETFs saw $5.23 billion in inflows.
Even governments like the UAE and Pakistan are increasing their Bitcoin stacks, and U.S. lawmakers are discussing a national Bitcoin reserve.
Bitcoin is still above its 200-day EMA and SMA. Yet, the pace of the recovery is not consistent. The RSI is currently 52, which suggests it is neutral, and short-term signals suggest dips may occur.
If Bitcoin holds above $106,000, there is a chance it could reach $110,000. If support is not held, prices could fall toward $98,000 or even lower. Volatility will be a factor in the near future.