Bitcoin’s 47K outflows – A supply shock or just another move?

Bitcoin saw 47K BTC outflows, but the price remained somewhat stable on the charts
Exchange reserves have continued to decline across the market

Bitcoin recently saw a significant outflow of 47,000 BTC, a movement that has sparked debate on whether it represents a true supply shock or a routine internal transaction. Historically, large outflows have been associated with long-term accumulation, reducing BTC’s liquid supply and potentially setting the stage for bullish momentum.

However, this latest move requires a closer look at on-chain data and price action.

Analyzing Bitcoin exchange reserves – Is accumulation in play?

An analysis of Bitcoin‘s netflows showed that it has been seeing significant outflows, before the spike it witnessed a few days ago. BTC outflows spiked to over 47,000 BTC, making it the largest such move since 2022.

The significance of these outflows led to talks about a supply shock. However, this alone did not quite confirm a supply shock.

Source: CryptoQuant

Also, the Bitcoin Exchange Reserve chart revealed a sustained decline in BTC held across exchanges, dropping from over 3 million BTC in mid-2024 to around 2.45 million BTC in February 2025.

A shrinking exchange balance typically means investors are moving BTC to private wallets for long-term holding, reducing the supply available for immediate sale.