$BTC The proportion of Bitcoin supply on exchanges has fallen below 15% for the first time since 2018, with some analysts seeing this as a sign of a supply shock as institutional demand for exchange-traded funds (ETFs) grows. While fewer Bitcoins on exchanges may reduce immediate selling pressure, the situation is more complicated than a simple in-and-out metric.

"The idea that falling BTC balances on exchanges = supply shock is a meme," Glassnode said, adding that "it doesn't mean there aren't real supply constraints building beneath the surface."