Key Takeaways:
- Bitcoin hit a new all-time high above $125,000, driven by shrinking exchange balances and rising investor confidence.
- Over 114,000 BTC, worth $14B, exited centralized exchanges in two weeks, marking a multi-year low in available supply.
- ETF inflows, dollar weakness, and global instability contributed to the rally, but analysts caution rising volatility ahead.
Bitcoin surged past $125,000 over the weekend, hitting a new all-time high before settling slightly lower in the $122,000 to $123,000 range.
The rally coincides with a sharp drop in the amount of Bitcoin held on centralized exchanges, which has fallen to the lowest level in six years.
BREAKING: NEW BITCOIN ATH OF $125,000! 🚀 pic.twitter.com/qeSDaqAb0Y
— Simply Bitcoin (@SimplyBitcoinTV) October 5, 2025
Glassnode data shows exchange balances at 2.83 million BTC, while CryptoQuant reports an even lower figure of 2.45 million BTC, suggesting a potential seven-year low.
In just two weeks, over 114,000 BTC – worth more than $14 billion – have been withdrawn from exchanges.
This trend points to growing long-term confidence, as investors move their holdings into self-custody or institutional wallets, reducing the supply available for trading.
The price rise is further supported by inflows into Bitcoin ETFs and broader macroeconomic factors, including dollar weakness and rising concerns over global financial stability.
Analysts warn, however, that with liquidity thinning, price volatility could increase.
If Bitcoin sustains momentum above $126,000, analysts believe further upside is likely, but a failure to hold gains may lead to a short-term correction back toward the $120,000 range.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
His extensive experience and features in top-tier publications like Forbes and CNN underscore his deep understanding of the crypto world and its future potential.
Check Adam out on: