Bitcoin News: Exchange Reserves Plummet 2% as Stablecoin Market Soars 14% in 2025
The cryptocurrency market is witnessing a dramatic shift as Bitcoin exchange reserves decline and stablecoin adoption skyrockets. In July 2025, Bitcoin reserves on exchanges dropped by 2%, continuing a 14% decrease since January. Meanwhile, the stablecoin market cap surged by $4 billion following the GENIUS Act, reaching $250 billion. These trends signal a pivotal moment for crypto investors and regulators alike.
Bitcoin Exchange Reserves Hit Historic Low
For the first time since 2018, less than 15% of Bitcoin’s total supply remains on exchanges and OTC desks. This decline suggests:
- Growing investor confidence in long-term holding strategies
- Potential supply shock if demand increases
- Reduced liquidity that may increase price volatility
Stablecoin Market Booms After Regulatory Clarity
The GENIUS Act’s passage on July 18 triggered remarkable stablecoin growth:
| Metric | Change |
|---|---|
| Market Cap | +$4B (to $250B) |
| Active Addresses | +20% (38M total) |
Tokenized Real-World Assets Gain Traction
The RWA market surpassed $25 billion in July, with notable sectors:
- Tokenized private credit: 260% YTD growth
- U.S. Treasury debt: Significant expansion
- Tokenized stocks: 15% increase to $400M
Global Crypto Regulation Advances
Key developments include:
- Hong Kong finalizing stablecoin rules
- EU firms securing MiCA licenses
- U.S. states updating crypto laws
These July 2025 developments showcase a maturing crypto ecosystem where regulatory progress meets technological innovation. The Bitcoin supply squeeze and stablecoin adoption wave highlight shifting investor behavior toward long-term holding and practical financial applications.
Frequently Asked Questions
Q: Why are Bitcoin exchange reserves decreasing?
A: Investors are moving Bitcoin to long-term storage, indicating bullish sentiment and potential supply constraints.
Q: What caused the stablecoin market growth?
A: The GENIUS Act provided regulatory clarity, boosting confidence in stablecoin usage for payments and financial services.
Q: How are tokenized RWAs performing?
A: The sector grew 2.6% in July, led by tokenized credit and Treasury products with 260% year-to-date growth.
Q: What’s next for crypto regulation?
A: Expect more licensing frameworks globally and continued state-level updates in the U.S. as the industry matures.
