Crypto Pills

Bitcoin approaches $125,000 while balances held on centralized exchanges drop to a six‑year low, signaling constrained on‑venue supply alongside a strong price trend. Reduced inventories on exchanges can lower immediate sell pressure and increase the impact of incremental buy orders, contributing to sharper price swings when liquidity thins. The dynamic often reflects a mix of long‑term holders moving coins to self‑custody and participants opting for off‑exchange settlement, while active traders recalibrate execution to account for order book depth. With fewer coins readily available to sell, upward moves may accelerate, but downside retracements can also become abrupt if bids are thin. Participants who trade crypto track wallet flows, market depth, and spreads to anticipate slippage and adjust risk. The combination of a high watermark in price and a multi‑year low in exchange supply puts supply‑demand tension at the center of near‑term market behavior.