Bitcoin and Ethereum exchange supply hits multi-year lows

On‑chain data shows that the amount of Bitcoin held on exchanges has fallen to its lowest level since 2017, while Ethereum balances on exchanges are at their lowest since 2015. The decline reflects a continued migration of coins to self‑custody solutions such as institutional wallets, ETFs and staking contracts, reducing the liquid supply available for immediate trading.

Analysts note that long‑term holders are accumulating the scarce supply, with Bitcoin long‑term holder positions turning positive and overall long‑term holdings approaching 15 million BTC. While tighter supply can amplify price movements if demand recovers, the data also indicate that reduced exchange balances alone may not sustain a prolonged price rally without stronger buying pressure.