Bitcoin Exchange Reserves Hit All-Time Lows

Bitcoin and Ethereum reserves on major exchanges have plummeted to historic lows as of June 1, 2025, signaling potential market moves.

Major cryptocurrency exchanges, including Binance and Coinbase, report record low reserves of Bitcoin and Ethereum. This trend is largely attributed to the increased use of non-custodial storage and long-term holder accumulation.

Long-term holders and institutions have significantly increased their holdings, influencing exchange reserve levels. Observers, including Crypto Rover, consider these changes as possibly indicating a future supply squeeze in the cryptocurrency markets.

The decline in exchange reserves could trigger decreased selling pressure and spark price increases. Analysts note the key role of reduced liquidity in shaping future bullish sentiment among investors.

Long-term market effects include potential supply squeezes, where diminished availability might push prices higher. This could lead to accelerated market movements, influenced by investor behavior and institutional strategies.

As historical precedents show, falling exchange reserves often align with price rallies. Investors are wary of potential volatility if demand surges unexpectedly amid low supply.

On-chain data suggests a continuing trend of assets moving to cold storage. Anticipation of future price movements encourages keen monitoring of reserve levels for strategic decision-making among traders and analysts.

“BTC and ETH balances on major exchanges have reached historic lows as of June 1, 2025. This signals a potential supply squeeze.” – Crypto Rover, Founder, Cryptosea