Quick Crypto Insight: Exchange Supply, Outflows and the $60K Stress Test

Bitcoin has moved sharply lower in February, trading around $68,700 and down nearly 22% year-to-date — on pace for its weakest first quarter since 2018 — as the market tested support near $60,000 in a volatile episode described as a stress test for major venues ^[4][2].

Investment products continued to see withdrawals: CoinShares reported $173 million of outflows last week, bringing total redemptions to $3.74 billion over the prior four weeks, underscoring persistent institutional caution ^[3].

Commentators and market observers point to on-exchange supply dynamics as a transmission channel for price moves: removing BTC from exchanges can tighten available collateral for short positions and reduce derivative-driven selling pressure, and one post argued roughly 80% of a recent dip reflected leveraged bets rather than spot sales — highlighting how self-custody decisions can influence market mechanics ^[1][2].

In short, recent price action combined with sizable fund outflows and shifts in where BTC is held have together reshaped market dynamics in February; observers cite both behavioral differences across exchanges and the effects of declining exchange balances on derivatives markets as key factors to watch ^[4][3][1].