Recently, many people have noticed that Bitcoin and Ethereum are quietly leaving centralized platforms. This situation has sparked some speculation about an impending supply squeeze. As the available token pool continues to shrink, it seems that long-term holders are more inclined to hold, which has led the entire community to wonder what impact this will have on the next phase of the market cycle.

According to reports, the supply of Bitcoin and Ethereum on these platforms is decreasing significantly. The supply of Bitcoin has dropped to just 7.1%, the lowest level since November 2018, while the supply of Ethereum has fallen below 4.9% for the first time. Over the past five years, more than 1.7 million Bitcoins have been withdrawn from centralized platforms, while the withdrawal of Ethereum has exceeded 15.3 million. This data indicates that an increasing number of people are inclined to self-custody and hold for the long term, which could lead to supply tightness when demand surges.

Discussions about supply shocks have been ongoing. Typically, a supply shock occurs when the supply of tokens on the platform is depleted while demand surges—this puts upward pressure on prices. With the supply of Bitcoin and Ether on the platform at multi-year lows, it seems that everything is aligning for a significant push in the market. However, not everyone believes this situation will lead to a price increase. Some think that these large holders are merely transferring funds to safe storage rather than hoarding. Others point out that retail investors remain cautious, and the previous ETF frenzy is also cooling down. If market sentiment changes, then those funds that are currently on the sidelines may quickly return to the platform and reverse the current trend.

The number of Bitcoin holders in the United States has reached 50 million, surpassing the number of those holding gold. This marks a significant shift in investor priorities. Bitcoin is no longer a fringe asset; it is increasingly being seen as a store of value. The sharp decrease in supply on the platform may not just be speculative behavior, but more likely a reflection of the redefinition of value in the digital age.

Of course, everyone should remember that this contains third-party opinions and does not constitute any financial advice. At the same time, this content may contain sponsorship information. What do you think about these trends? Feel free to leave a comment and share your views!