Bitcoin and ether exchange supplies hit multi-year lows

The old logic that empty exchanges lead to instant moons is facing a reality check. Data from Santiment shows bitcoin supply on exchanges has shriveled to levels not seen since 2017, while ether reserves haven't been this thin since 2015. Normally, this supply crunch acts as a primary fuel for a rally because there's less liquid crypto available to sell. It's a classic bottleneck. But analysts warn that just because the cupboards are bare doesn't mean a price surge is guaranteed tomorrow. Instead, these drained reserves act as a structural foundation for the next major cycle rather than a short-term trigger. Investors are moving assets into self-custody or staking protocols, shifting the market's internal plumbing. While the immediate impact feels muted, the lack of overhead pressure makes the path of least resistance much steeper once demand actually kicks in. Will the next wave of buyers find enough liquidity to fill their orders without sending prices into a vertical climb?