Bitcoin Expert Forecasts Selling Pressure and Rising Market Instability
In the ever-evolving world of cryptocurrency, a notable trend has emerged in the Bitcoin market this year. According to IT Tech, a prominent analyst in the industry, Bitcoin reserves on centralized exchanges have been declining rather than increasing, with a 2% decrease in July and an overall 14% drop since January 2025.
This shrinking supply on exchanges could lead to greater Bitcoin price volatility due to a supply-demand imbalance. With fewer coins available to trade, buyer demand may meet limited supply, potentially causing a "supply shock" and greater price swings. The current divergence between balance on exchanges and Bitcoin’s price highs supports this possibility. Reduced reserves usually mean less liquidity, which can increase price volatility as large orders have a greater market impact.
Despite this general trend, some large exchanges, such as Bitget, report maintaining or even holding reserves far above user balances, with Bitget showing a Bitcoin reserve ratio of 365% versus user assets as of August 2025. This high reserve ratio suggests strong asset backing and user confidence for that specific exchange, but it does not contradict the overall decline of Bitcoin reserves across all exchanges since Bitget’s reserves may include internal holdings or extra collateral.
The decreased Bitcoin reserves could potentially lead to increased market activity as investors gear up for more active trading. This shift in trends might reflect expectations of price rallies or volatility spikes. In fact, recent analysis by IT Tech indicates a potential shift in trends in the Bitcoin market.
However, IT Tech also suggests that there could be potential selling pressure on Bitcoin's price in the near future due to increased reserves and net inflows. A continued growth in reserves and net inflows could lead to heightened volatility in the Bitcoin market.
As of now, Bitcoin is trading around $94,460, according to current market data. This analysis aligns with current market data and expert commentary from mid-2025.
[1] Source: IT Tech's analysis and CryptoQuant data [2] Source: Bitget's reserve ratio report, August 2025 [3] Source: CoinGecko data, August 2025
- The decline in Bitcoin reserves on centralized exchanges, as evidenced by IT Tech's analysis, could encourage more investing activity in the Bitcoin market, possibly leading to price rallies or increased volatility.
- Despite the overall decrease in Bitcoin reserves, some key exchanges, like Bitget, have reported holding excess reserves, providing strong asset backing and increasing user confidence in such exchanges, as suggested by Bitget's reserve ratio report.
