Bitcoin’s dwindling exchange reserves don’t pack the same bullish punch anymore
Santiment reported that bitcoin supply is at its lowest since 2017 and ether since 2015, adding that it doesn’t guarantee prices will move higher but helps set up crypto’s next bull cycle.
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Summary
- Bitcoin and ether balances on centralized exchanges have fallen to their lowest levels in years, a trend long seen as bullish because it implies fewer coins are immediately available to sell.
- Analysts say this metric is now less reliable as a price signal because large amounts of crypto have shifted into institutional custody, ETFs, DeFi protocols and other onchain uses rather than long-term cold storage.
- Even so, a growing share of bitcoin and ether is effectively locked up by companies hoping for long-term price gains.
