Bitcoin Exchange Supply Falls to 6.6%, Ethereum to 4.3% Since 2015; Experts Debate Bullish Signal Status

According to cryptocurrency analytics company Santiment, Bitcoin's supply on centralized exchanges has fallen to approximately 6.6% of total circulating supply, while Ethereum reached a historic low of 4.3%. These levels represent the lowest figures since 2017 for Bitcoin and 2015 for Ethereum, respectively.

Historically, declining exchange supply was considered a bullish signal, as it suggested investors preferred holding assets in personal wallets rather than selling. However, experts now argue this indicator no longer reliably signals price gains. Santiment attributed the shift to changing market structures, including institutional custody services, the rise of spot ETFs, staking, and DeFi platforms, which have altered how capital flows are tracked. Nevertheless, Santiment maintains that historically low exchange supplies represent a positive long-term development, potentially reducing the risk of major exchange-driven sell-offs and creating a healthier foundation for sustainable growth.