Bitcoin reserves on centralized exchanges have reached a new all-time low, falling below 2.5 million BTC, marking the lowest supply levels in nearly seven years. This decline represents the fifth consecutive week of outflows from exchanges, reflecting a trend of increased self-custody and long-term holding by investors. The percentage of Bitcoin supply held on exchanges has dropped to approximately 14.5%, a level not seen since August 2018. This sustained reduction in exchange balances suggests a potential upcoming supply shock in the Bitcoin market. Despite Bitcoin reaching all-time high prices, exchange trading volumes remain subdued at around $72 billion daily on average, less than half of the peak volumes seen in previous cycles. Recent activity also includes a notable inflow of Bitcoin to exchanges, the largest since July 2024, which may indicate profit-taking near current highs and possible capital rotation into alternative cryptocurrencies.