Bitcoin (BTC) is flashing a critical supply signal as investors withdrew at least 30,000 BTC from crypto exchanges in a week.

With corporations like Strategy aggressively accumulating the number one cryptocurrency, market watchers warn of a liquidity crunch that could ignite volatility.

Bitcoin Outflows Point to Reduced Selling Pressure

Recent on-chain data from Santiment, shared by analyst Ali Martinez on X, shows that over 30,000 BTC, valued at $2.5 billion, had been withdrawn from exchanges since March 24. Martinez also noted a parallel $106 million worth of Bitcoin had been transferred to private wallets in the last few hours.

When traders remove their BTC from exchanges into private wallets, it is often for long-term holding. This reduces the available supply in the market, potentially driving up prices if demand remains strong.

The trend aligns with a corporate buying spree that has intensified the supply squeeze. Strategy (formerly MicroStrategy) added 6,911 BTC valued at $584 million to its holdings last week, bringing its total ownership of the asset to a staggering 506,137 BTC.

Japan’s Metaplanet and California-based KULR Technology also contributed to the scarcity of available BTC, buying $12.6 million and $5.3 million worth of the cryptocurrency, respectively. Even meme stock darling GameStop entered the fray, approving a plan that will see it spend $1.3 billion on the digital asset.

Consolidation Before the Next Move

Meanwhile, trader @TedPillows recently pointed out that BTC might be in a Wyckoff re-accumulation phase. This is when large institutional investors or the so-called “smart money” acquire crypto at lower prices, as it occurs right after a downtrend.

According to Ted’s analysis, Bitcoin’s drop below $85,000 is a form of “manipulation” designed to shake out weaker hands. He predicts that if the OG cryptocurrency recovers to surpass $92,000, bearish traders could face significant losses.

Changing hands at under $82,000 at the time of this writing, BTC’s price action suggests short-term weakness but long-term strength. It is down about 1.2% in the last 24 hours and 6.1% over the past seven days, a shade below the broader crypto market’s 7.60% drop in the same period. However, zooming out to the last 12 months reveals more encouraging data, with Bitcoin maintaining a 16.5% gain in that time.