Bitcoin and Ethereum reserves on major cryptocurrency exchanges have reached historic lows, signaling potential market movements.
Current State of Exchange Reserves
As of June 1, 2025, Bitcoin and Ethereum reserves on major exchanges, including Binance and Coinbase, have reached record low levels. This trend is associated with the growing use of non-custodial storage and accumulation by long-term holders.
Impact of Long-Term Holders
Long-term holders and institutional investors have significantly increased their holdings, influencing exchange reserve levels. Observers believe these changes may indicate a potential supply squeeze in the cryptocurrency market.
Forecasts and Possible Consequences
The decline in exchange reserves could lead to decreased selling pressure and spark price increases. Analysts note the critical role of reduced liquidity in shaping future bullish sentiment among investors. Historical precedents show that falling exchange reserves often align with price rallies. Investors should be cautious of potential volatility.
Given current trends and the movement of assets to cold storage, factors such as exchange shortages and long-term holder activity may lead to price shifts in cryptocurrencies in the near future.
