On July 11, according to OKX market data, BTC continued to rise and broke through $118,000, setting a new historical high! So, what are BTC holders doing?

According to CryptoQuant data, as of July 2025, the BTC balance held by centralized exchanges has dropped to about 2.4 million coins, accounting for approximately 12% of the total circulating supply of Bitcoin, marking a nearly four-year low. Since the beginning of 2024, this metric has been on a downward trend, accelerating its decline in the second quarter of 2025, contrasting sharply with the rising trend of BTC prices, exhibiting typical bull market characteristics: a "withdrawal tide" from exchanges often indicates the establishment of a medium to long-term upward structure.

This also indicates that a large amount of BTC is flowing into the hands of long-term holders. Driving factors include the continuous accumulation by spot ETFs (such as BlackRock and Fidelity), users preferring self-custody of assets after the FTX incident, and institutions transferring BTC to private wallets through over-the-counter trading. At the same time, global interest rate expectations have shifted towards easing, with funds flowing back into risk assets, further reinforcing the structural supply tightening of Bitcoin. Compared to previous cycles, the market structure behind this trend is more mature, with greater influence from institutions and long-term holders. This may mean that future Bitcoin price movements will be more stable and less prone to the sharp crashes caused by concentrated selling pressure from exchanges in the past.

However, it is also necessary to be wary of some historical lessons, such as when market sentiment becomes overly optimistic, and almost all participants turn to holding and reluctant to sell, the lack of short-term liquidity may amplify price volatility, which has occurred in history.

Source: CryptoQuant

In contrast, according to Arkham Intelligence data, the amount of BTC held in OKX exchange wallets shows an upward trend: it has rapidly increased since April 2019 and has maintained a high level between 2023 and 2024; however, there has been a decline from mid-2024 to 2025, which also corroborates the trends of BTC balances in other exchanges. As of July 10, the current BTC holdings in OKX wallets amount to over 110,000 coins.

This divergence indicates that OKX may be more competitive in the current market environment. Firstly, OKX has consistently published monthly proof of reserves (PoR) and maintained a BTC reserve rate of over 100%, significantly enhancing user trust. Secondly, the platform has consolidated its position as the second-largest exchange globally through product innovation and improved user experience, attracting a large influx of funds. Additionally, its proactive compliance efforts in key markets such as Dubai, Singapore, the EU, and the US have also facilitated the migration of assets from institutions and retail users. Therefore, despite the overall decline in BTC balances across exchanges, the continuous influx of new users and institutional funds may drive the platform's balance to grow against the trend.

Source: Arkham Intelligence

Moreover, according to Coinglass data, as of July 10, there has been a net inflow of BTC into OKX in the past 24 hours, indicating that BTC users are accelerating their gathering on the platform. This change may be related to the recent launch of the "BTC Staking Interest Product," which has attracted more high-net-worth users to deposit BTC into OKX.

More on-chain data also corroborates this judgment. Since July 9, the BTC holdings in OKX exchange wallets have shown a certain increase. Arkham Intelligence shows that the timing of on-chain fund inflows coincides precisely with the launch of OKX's low-risk principal-protected financial product "BTC Staking Interest Product." This product was sold out for two consecutive days after its launch, demonstrating strong demand from users for low-risk BTC appreciation tools.

So, is this the "optimal currency-based solution" that high-net-worth users are looking for? According to official information, this product is the industry's first BTC financial product, with a historical average annualized return currently around 2.57%. Platform VIP users 1-8 can apply for purchases and redemptions at any time, with zero fees. Compared to traditional financial products, its flexibility and low-risk principal protection attributes are welcomed by BTC holders.

Source: Coinglass

It is worth noting that, according to OKLink data, some of the fund inflows are not from new purchases but from asset migrations by users from other exchanges such as Coinbase and Bitfinex, indicating that OKX's "BTC Staking Interest Product" has stronger user stickiness and fund absorption capacity in the current market. This phenomenon reflects the ongoing exploration of innovative financial tools in the market and highlights the urgent demand from users for safe and flexible solutions.

The reason is that in the current market environment, BTC holders face not only the pain point of idle assets that cannot effectively appreciate but also the challenge of achieving stable appreciation while ensuring the safety of the principal. Although there are various CeFi financial products available in the market, many still have limitations such as long lock-up periods, large fluctuations in returns, and poor flexibility. In times of extreme market volatility or opaque platform mechanisms, users find it difficult to quickly redeem or clearly ensure the safety of their principal.

DeFi products, on the other hand, are limited by natural barriers such as smart contract security, high return volatility, and complex on-chain operations, making them unfriendly to most BTC holders who seek low thresholds, safety, and peace of mind. At the same time, frequent negative events in the industry, such as scams, liquidations, and technical failures, have made users more sensitive to "principal protection." Especially high-net-worth individuals, miners, and long-term holders tend to choose principal-protected products under large platforms with transparent mechanisms to avoid non-market risks.

Source: OKLink

An interesting phenomenon has emerged in this bull market: despite Bitcoin prices reaching new highs, the number of active addresses on-chain has not surged correspondingly. Glassnode data shows that on July 9, the number of daily active addresses on the Bitcoin network was about 775,000, comparable to levels seen in 2019 and 2020. This means that although BTC prices have risen several times, the influx of new users and new funds is relatively limited, with the market being driven more by existing funds. This divergence of rising prices without a corresponding increase in active addresses reflects that the main driving force behind this market trend is not widespread participation from retail investors but rather the actions of institutional funds and long-term holders.

Many large transactions are completed through over-the-counter or block trades, without generating a large amount of new address activity on-chain. Therefore, the active address metric suggests that the current market's rise is driven more by changes in the structure of funds (such as institutional accumulation and ETF purchases) rather than the frenzy of ordinary investors entering the market. This also explains why, despite reaching new highs, the market has not experienced the congestion and skyrocketing fees seen in the past—because a large number of transactions occur off-chain or between large accounts, resulting in relatively moderate on-chain activity.

These Bitcoin whales have extremely high security requirements, not only due to their BTC holdings starting from millions of dollars but also because once asset theft or platform risk control errors occur, the losses are huge and difficult to recover. At the same time, large holders often face stricter compliance reviews and reputation maintenance pressures. They are more inclined to choose established exchanges with third-party audits, multiple security protections, and licenses to minimize technology and risk while pursuing returns.

Source: Glassnode

Bitcoin is often regarded as "digital gold," and its anti-inflation properties have become a consensus, especially in the current context of continuously diluted fiat currency credit and frequent fluctuations in global liquidity, highlighting its long-term value. However, the Bitcoin market is no longer an isolated niche; it is a global asset deeply interconnected with the macro economy and traditional financial systems. Inflation data, interest rate policies, fluctuations in US stocks, and even geopolitical events can all influence Bitcoin's price performance through channels such as risk appetite and capital flows. Therefore, understanding Bitcoin's market trends requires not only focusing on on-chain candlestick charts but also possessing a cross-market, multi-dimensional analytical perspective to grasp the interaction logic between macro variables and the crypto ecosystem.

At the same time, the market structure of Bitcoin itself is also changing. The BTC reserves on exchanges continue to decline, with more and more assets flowing into large holders, and market liquidity is being absorbed on a large scale, leading to a gradual decrease in the accessibility of Bitcoin and a continuous rise in marginal costs. In this trend of supply tightening, holders need to think about how to achieve asset appreciation while "holding on." OKX's "BTC Staking Interest Product" allows users to enjoy low-risk principal-protected currency-based returns without selling BTC, achieving the dual goals of accumulation and earning, providing a more reliable way to cope with inflation and interest rate uncertainties.

Undoubtedly, BTC's stable appreciation methods and products are becoming the consensus choice among large holders.

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