Bitcoin Hits Record on Coinbase 

On Sunday morning, Bitcoin surpassed $125,700 on according to TradingView, setting a new record. The previous peak was $124,500 on August 14. BTC had dropped 13.5% by September 1 but showed a strong recovery last week. Nova Dius CEO Nate Geraci commented: 

“Bitcoin has reached an all-time high, and most people still don’t fully understand what Bitcoin is.” 

Analyst Rekt Capital added:

“If Bitcoin convincingly breaks $126,500, the price could accelerate much higher.” 

Exchange Bitcoin Reserves at Six-Year Low 

Glassnode reports that total BTC held on centralized exchanges fell to 2.83 million on Saturday, the lowest in six years. CryptoQuant shows total exchange reserves at 2.45 million BTC, a seven-year low. 

Over the past two weeks, more than 114,000 BTC have left exchanges, valued at over $14 billion. This indicates holders plan to keep their coins long-term rather than sell. VanEck Digital Assets Research Head Matthew Sigel noted, “The outflow of Bitcoin from exchanges signals significant scarcity,” urging investors to remain cautious. 

Institutional Funds and Long-Term Goals 

Most of the BTC leaving exchanges is going to institutional funds, digital asset treasuries, or individual wallets. This reduces available supply in the market and can drive prices higher. Bitcoin’s long-term rally is supported by declining exchange reserves and rising institutional demand. Analysts note this trend could also affect altcoins and other crypto assets. 

Factors Supporting Bitcoin’s Rally: 

• Over 114,000 BTC leaving centralized exchanges 
• Rising interest from institutional investors 
• Long-term holding strategies 
• Reduced available supply 
• New price peak above $125K 

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The post Bitcoin Supply on Exchanges Drops! What’s Driving the Rally? appeared first on Coin Engineer.

Why Is Exchange Supply Decreasing? 

Investors are moving Ethereum and Bitcoin off centralized exchanges. Santiment reports that over the past five years, 1.7 million BTC and 15.3 million ETH have been transferred from exchanges. This suggests a preference for storing assets in cold wallets. Security concerns, long-term investment expectations, and participation in decentralized finance (DeFi) projects are driving this trend. Lower exchange supply reduces liquidity and supports potential price increases. Additionally, Santiment highlights a 20% increase in Ethereum’s Layer-2 solution activity as a key factor strengthening this movement. Whales are also playing an active role, with Ethereum whales accumulating an additional 450,000 ETH, bringing their total holdings to 40.75 million ETH. 

Ethereum has under 4.9% of its supply on exchanges for the first time in its 10+ year history. And Bitcoin's supply on exchanges is down to just 7.1% for the first time since November, 2018.

Over the past 5 years, there is:

1.7M less Bitcoin on exchanges
15.3M less… pic.twitter.com/kKn9s1m2mC

— Santiment (@santimentfeed) May 19, 2025

According to SoSoValue, U.S. spot Ethereum ETFs recorded a net inflow of $30 million over the past month, marking the first positive flow after a prolonged period of outflows. During the same period, BlackRock’s Ethereum funds surpassed $2.9 billion in total assets under management. 

What Does This Mean for the Market? 

A declining exchange supply creates a perception of scarcity in the crypto market. Santiment notes that this reduces selling pressure and creates potential for price increases. ETH exchange supply dropping below 4.9% signals strong confidence in the Ethereum ecosystem. Bitcoin’s 7.1% supply level paints a similar picture. However, the impact on prices depends on macroeconomic factors. Interest rates, regulatory developments, and market sentiment will shape the outcome of this trend. Santiment’s data indicates that investors are committed to HODL strategies and avoiding short-term sales, reinforcing expectations of a long-term bullish outlook in the crypto market. 

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Ethereum and Bitcoin Supply Hits Historic Lows  appeared first on Coin Engineer.