Bitcoin exchange supply hits multi-year lows, but bullish signals now less clear due to market changes.

Bitcoin and Ethereum balances on centralized exchanges have dropped to their lowest levels since 2017 and 2015, respectively, traditionally seen as bullish. However, the rise of institutional custody, spot Bitcoin ETFs, and DeFi means coins leaving exchanges aren't just stored long-term but also used in new financial products. This shift has weakened the reliability of exchange supply as a bullish indicator, even though Bitcoin accumulation remains strong with many coins held by public companies, ETFs, and DeFi protocols. Overall, more than half of Bitcoin's circulating supply is inactive, reflecting ongoing long-term holding despite evolving market dynamics.