Bitcoin Exchange Supply Nears 2017 Low as Ethereum Exchange Supply Hits 2015 Level, Santiment Says

Bitcoin and Ethereum are seeing a sharp decline in the amount of supply held on cryptocurrency exchanges, with exchange balances for both assets reaching multi-year lows, according to blockchain analytics firm Santiment.

Santiment’s analysis shows Bitcoin’s exchange supply has dropped close to its lowest level since 2017, while Ethereum’s exchange-held supply is nearing levels last recorded in 2015. The decline indicates that fewer coins are available for immediate sale on trading platforms, even as the market has experienced periods of volatility.

The analytics firm said the trend does not guarantee further price gains, but noted that reduced exchange balances could lower the risk of a large-scale sell-off caused by heavy selling activity on platforms. Santiment added that investors moving BTC and ETH into self-custody wallets often reflect stronger long-term holding behavior.

With Bitcoin and Ethereum continuing to represent the core assets of the cryptocurrency market, Santiment said the sustained reduction in exchange supply could create a healthier market structure for a potential longer-term growth phase, assuming investor patience remains intact.

Source: Santiment