Bitcoin (BTC) drops below $92,000, but supply continues to shrink

Bitcoin is trading near $91.7K as the stock market falls to 13.7%, with low inflows, steady outflows and key levels of $93.8K and $96.5K in focus.

The stock exchange offering has reached the lowest level since 2018

The share of Bitcoin held on exchanges has fallen to around 13.7%, the lowest since 2018. Binance holds just 3.2% of the total supply, based on recent on-chain data. According to for CryptosRus, this is part of a multi-year trend, not a temporary shift. Lower inflows indicate that holders are not preparing for a sale.

The asset has been rising steadily with no signs of large deposits on exchanges. This behavior contrasts with previous cycles, where increases in currency inflows often led to corrections. So far this does not appear to be the case.

In support of this, the net flow charts have shown consistent outflows in recent weeks. On several days, especially on December 22 and January 5, large amounts of BTC disappeared from the exchanges. These outflows suggest that buyers are moving coins into cold storage or long-term portfolios.

Even as Bitcoin approached $95,000 and later retreated, currency inflows remained low. The lack of BTC deposited on exchanges supports the view that fewer holders will want to sell, even when the price is near local highs.

To add another layer to the current picture, there is some debate over long-term holder supply data. Analyst CW marked an issue related to the Coinbase wallet migration in November. They said:The Coinbase wallet migration… is counted as a decrease in LTH supply,‘, but that data may not reflect the actual movement of long-term holders.

CW added that “more than 500,000 BTCshould be included in long-term supply figures. If this is accurate, it means that current estimates underestimate how much BTC is being withdrawn from exchanges.

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Price choppy around $93,000 as traders monitor levels

Bitcoin has shown more volatility this week. After reaching almost $95,000, it fell below $91,500 before bouncing back towards $93,000. Traders keep an eye on price levels.

Lennaert Snyder said“$BTC is trying to pick a direction here“, and pointed to $93,800 and $96,500 as key levels to watch. He also mentioned a potential downside if the market fails to hold $91,200.

Elsewhere, Michaël van de Poppe noted that price remains above the 21-day moving average. He said the market is still within a range but could rise further if that level continues. The $100,000 mark remains in focus as momentum builds and supply remains tight.