Record lows have been reached in the exchange supply of both Ethereum and Bitcoin as long-term investors increasingly favor self-custody and staking strategies. This trend suggests a reduced sell pressure on the market and potential bullish price momentum, according to Cointelegraph(X). 50% of Ethereum’s supply was held on exchanges in May 2020 but that number has continued to decline, suggesting a growing trend of self-custody. The decline in exchange reserves coincides with Bitcoin’s surge past the $104,000 mark. 7.1% of Bitcoin is now locked up in exchanges, levels not seen since November 2018 and this aligns with a similar trend for Ethereum, which has seen its share on exchanges fall to around 15%. This shift towards self-custody and long-term holding signals a maturing investor base that prioritizes asset security and future growth. The market’s overall liquidity has also decreased, potentially impacting short-term trading strategies but benefiting long-term investors. The trend highlights the growing reliance on decentralized platforms as opposed to centralized exchanges. As long-term investors continue to hold onto their assets, this could lead to further price appreciation and a potential for bullish momentum in the market.