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Bitcoin and ether exchange reserves hit lowest levels in years

CoinDesk notes Santiment data show bitcoin and ether balances on centralized exchanges at the lowest levels since 2017 and 2015, but the metric is less reliable for predicting prices as more coins move to ETFs, institutional custody and DeFi.

Reported · Written up by our desk · Market Structure

Bitcoin and ether balances on centralized exchanges have fallen to their lowest levels in years, a trend Santiment has long treated as a bullish setup because it implies fewer coins available for near-term sale, CoinDesk reports.

According to Santiment, bitcoin exchange supply is at its lowest since 2017 and ether since 2015, though analysts say the signal no longer carries the same weight since large portions of crypto have shifted into institutional custody, ETFs, DeFi protocols and other on-chain uses rather than long-term cold storage.

CoinDesk also reports that a growing share of bitcoin and ether is effectively locked up by companies aiming for long-term price gains, even as observers note exchange-reserve declines have occurred while bitcoin has spent months around roughly half its peak value.

In an interview cited by CoinDesk, Mark Zalan, CEO of GoMining, said exchange-supply drawdowns have historically preceded multi-quarter bull phases, but he declined to pin down when the next bull cycle will start, saying any precise timing would be guesswork.

Latest closeBitcoin $63,168.34 ▲1.5%

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