Number of BTC and ETH on exchanges has fallen to its lowest since 2017 and 2015, respectively

This could be a harbinger of a new bull market, according to analysts at Santiment

22.05.2023 - 15:15

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3 min

What’s new? Analytics firm Santiment recorded a drop in the number of bitcoin and Ethereumon centralized exchanges (CEXs). According to the statistics, as of May 20, users were storing only 5,7% of the BTC issuance on the platforms, the lowest level since December 2017. Ethereum’s figures have fallen to 10,1% of issuance, the lowest figures since the project’s launch in 2015. According to experts, the decline in the figure usually indicates a future bull market.

📉👌 #Bitcoin & #Ethereum both continue to quietly see more and more of their existing supplies move into self custody. Though not a perfect indicator, declining coins on exchanges generally hint at future bull runs, given enough time playing out. https://t.co/N1Icon7U19 pic.twitter.com/f5YXzqmZNf — Santiment (@santimentfeed) May 20, 2023

What else is known? Santiment, on the other hand, recorded a sharp influx of ETH to exchanges on May 3. The number of unique users sending the asset to the platforms reached an 8-month high, which could herald an increase in the volatility of the asset, similar to that seen during the Ethereum consensus algorithm change and the bankruptcy of the crypto exchange FTX in September and November last year, respectively.

And in April, analysts said that the rise in the number of long-term bitcoin holders could signal the start of a bull market. A similar trend was seen from January through April 2021, when the BTC rate rose above $64 000 for the first time and then set an all-time high of $69 000 in November.