Bitcoin and Ethereum see volatility amid ETF inflows and low exchange supply

Cryptocurrency markets experienced significant volatility during the week of September 21. Bitcoin saw a sharp rise, climbing 6.71% on September 21 to reach 86,620 USD, hitting an eight-month high. This surge was supported by substantial institutional inflows into US-based spot Bitcoin ETFs, which saw approximately 2.25 billion USD in net inflows between September 21 and September 24.

Ethereum also saw early weekly gains, rising nearly 5% on September 21 to reach 2,776 USD, though it faced subsequent pullbacks. Concurrently, data from Santiment indicates that the proportion of Ethereum held on exchanges has dropped to a record low of approximately 3.49% of the total supply. This reduction in exchange supply is attributed to increased activity in staking and decentralized finance (DeFi), with roughly 35% of the total ETH supply currently staked.

While the decrease in exchange-based supply can reduce immediate sellable liquidity, analysts note that this trend does not unilaterally guarantee price increases, as it depends heavily on future demand.