Bitcoin Hits $125K as Exchange Balances Drop to Six-Year Low

Bitcoin surged to a new all-time high above $125,700 on Sunday morning, breaking past its previous record of $124,500 set in August, according to data from ￰1￱ Takeaways: Bitcoin hit a new all-time high above $125,700 as “Uptober” momentum kicked ￰2￱ balances fell to multi‑year lows, with over 114,000 BTC leaving platforms in two ￰3￱ supply and OTC desk chatter point to potential spot shortages if price fails to ￰4￱ milestone comes as centralized exchanges report the lowest levels of Bitcoin reserves in six years, signaling a tightening supply backdrop amid growing investor ￰5￱ Kicks Off ‘Uptober’ With Sharp Rebound From September Lows The sharp recovery marks a strong start to October, often dubbed “Uptober” by traders, after Bitcoin slipped to $107,800 in early ￰6￱ the past week, the asset has climbed steadily, buoyed by renewed optimism and tightening exchange liquidity.

“Bitcoin hits new all-time high … And most people still don’t even know what Bitcoin is,” said Nate Geraci, president of ETF Store and Nova ￰7￱ hits new all-time high… And most people still don’t even know what bitcoin is. — Nate Geraci (@NateGeraci) October 5, 2025 Glassnode data shows the total Bitcoin held on exchanges dropped to 2.83 million BTC on Saturday, the lowest level since June 2019, when Bitcoin traded around $8,000 during a bear ￰8￱ posted a slightly lower reserve figure of 2.45 million BTC, placing it at a seven-year ￰9￱ than 114,000 BTC, valued over $14 billion, has exited exchanges in just two ￰10￱ mass outflow suggests a shift toward long-term holding, with Bitcoin moving into self-custody, institutional wallets, or digital asset ￰11￱ held on exchanges are considered “available supply,” more likely to be ￰12￱ reserves dry up, upward price pressure builds.

“Hearing exchanges are out of Bitcoin,” tweeted Matthew Sigel, head of digital assets research at VanEck. “Monday 9:30 am might be the first official shortage,” he added, cautioning that this wasn’t financial advice—but suggesting it might be time to ￰13￱ exchanges are out of ￰14￱ 9:30am might be the first official ￰15￱ financial advice… just: it might make sense to get some. ￰0￱ — matthew sigel, recovering CFA (@matthew_sigel) October 3, 2025 Investor Mike Alfred echoed the sentiment, revealing a call with a major OTC desk operator who said they could run out of Bitcoin within hours of futures markets opening, unless the price breaks above $126,000.

“Things getting wild,” Alfred ￰16￱ Inc.’s Bitcoin Holdings Hit $77.4B as Treasury Bet Pays Off As reported, Bitcoin’s surge past $124,000 has driven Strategy Inc.’s BTC holdings to a record $77.4 billion, the company revealed ￰17￱ firm, which began accumulating BTC in 2020 as a corporate treasury asset, has seen its holdings grow exponentially from an initial valuation of $2.1 billion to over 35 times that amount in just five ￰18￱ weathered the volatility of crypto markets with continued purchases during downturns, pushing its position to $8 billion in 2023 and more than doubling that to $41.8 billion by ￰19￱ 2025 rally has now pushed it to unprecedented levels, reinforcing the firm’s conviction that Bitcoin is a long-term hedge against fiat ￰20￱ a further boost, Strategy confirmed it will not face billions in taxes on unrealized crypto gains after updated IRS guidance clarified that such gains are excluded from the Corporate Alternative Minimum ￰21￱ around $28 billion in unrealized profit, the tax exemption cements Strategy’s position as the leading example of corporate Bitcoin accumulation.