Bitcoin (BTC) supply on centralized exchanges (CEX) has reached new lows, following a surge in bullish pressure and positive market conditions over the past 48 hours. According to on-chain analytics firm Glassnode, the Bitcoin supply on exchanges has dropped to 1,728,782 BTC, indicating a significant shift in investor sentiment.

The recent data shows a 24-hour exit of 23,654 BTC from exchanges, while weekly outflows stood at 19,859 BTC. This reduction in Bitcoin supply on exchanges can be attributed to the increasing bullish pressure surrounding the asset. In contrast, monthly flows were significantly lower at 9,509 BTC.

At the time of writing, Bitcoin is trading at $65,410, having recovered from a low of around $60,000 last week. The asset's price surge is a result of a series of positive developments in the market.

Whales Move Assets Off Exchanges: A Bullish Signal

The mass migration of assets from crypto exchanges is generally considered a bullish signal, as it indicates long-term holding intentions. When assets are transferred to other custodians, it suggests a bullish pressure, while flows to exchanges are bearish because it is easier to sell those assets.

This trend is similar to miner reserve movements before the Bitcoin halving, as miners reposition their holdings in anticipation of a 50% reduction in mining rewards. In the last 24 hours, Binance recorded outflows of 7,155 BTC, while Coinbase Pro saw a significant outflow of 16,075 BTC, which analysts attribute to institutional purchases.

Last month, a report from crypto exchange Bybit suggested that Bitcoin supply on exchanges could run out in nine months. The report cited the upcoming Bitcoin halving and inflows to spot Bitcoin ETFs as potential catalysts for this outcome.

Market Sentiment Drives Bitcoin Supply Plunge

The recent uptick in crypto asset prices has sparked bullish sentiments, leading to accumulation and long-term positions. As a result, Bitcoin supply on exchanges has fallen in the last two days. The release of a positive Consumer Price Index (CPI) and new institutional disclosures of spot ETF exposure have contributed to this trend.

This week, several traditional finance firms revealed their exposure to spot Bitcoin ETFs, further fueling the price surge in the market. These developments have created a positive feedback loop, with increasing demand and reduced supply on exchanges driving Bitcoin's price higher.