Bitcoin liquidity moves to non-KYC exchanges as US reserves thin

Bitcoin trading is slipping off regulated exchanges and settling where identity checks are lighter.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Bitcoin's remarkable ascent past $111,000 in May has illuminated a notable shift beneath the surface of market dynamics. Behind the scenes, a discreet migration of Bitcoin reserves is occurring, as more BTC finds refuge on offshore exchanges, outpacing the holdings on regulated U.S. platforms. Even as spot Bitcoin ETFs saw inflows in 2025, trading patterns are gravitating towards platforms offering more anonymity and less friction. This reshuffling raises pivotal questions about Bitcoin's evolving market behavior and its implications for price discovery mechanisms. Is the very infrastructure meant to legitimize Bitcoin inadvertently pushing its activity offshore? Discover the full story behind this intriguing paradox.