Santiment in its recent analysis reveals that Bitcoin and Ethereum reserves on centralized exchanges are hitting historic lows simultaneously. The supply of Bitcoin available for immediate sale on exchanges fell to its lowest level recorded since 2017, while Ethereum’s sits at lows not seen since 2015. This massive pullback in cryptocurrency inventory occurs in an environment of high institutional absorption and constant outflows toward self-custody.
This technical phenomenon suggests the preparation for a possible supply squeeze in the digital asset market. By drastically reducing the number of coins ready to be sold quickly, any sudden increase in buying demand, driven by both retail investors and spot ETFs, could push prices upward with unusual speed. The lower internal liquidity on platforms reduces selling pressure in the short term.
The next key step for traders will be to closely monitor whether net inflows into cold wallets continue to consolidate and if spot market demand manages to materialize this supply shock into a sustained new bullish cycle.
Source: https://x.com/SantimentData
Disclaimer: Crypto Economy Flash News is compiled from official and public sources verified by our editorial team. Its purpose is to quickly report on relevant events within the crypto and blockchain ecosystem. This information does not constitute financial advice or investment recommendations. We always recommend verifying the official channels of each project before making related decisions.
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