The Exchange Supply Ratio data indicates that the current value of the index is approximately 0.1376, one of its lowest levels since 2018. For comparison, historical values during previous market peaks ranged between 0.14 and 0.15, meaning that the percentage of Bitcoin held on exchanges today is significantly lower than during those peaks.
This sharp and gradual decline in the index since 2023 clearly indicates a continued structural outflow of Bitcoin from exchanges, rather than a short-term movement. Notably, this decline coincides with the price trading near $93,000, suggesting that the market is absorbing new demand without requiring a large influx of supply from exchanges. This represents a very healthy dynamic in bull markets.
On Binance alone, the current value stands at approximately 0.0328, which is low compared to previous peaks that exceeded 0.033–0.036 during periods of heightened selling pressure. The decline in the ratio on the world’s largest exchange reflects a reduced short-term selling intent, even among active traders.
More importantly, the current values do not show any sudden surge in the index, indicating that there are no significant inflows into exchanges in anticipation of selling. Historically, any sharp upward reversal in this index has preceded strong market corrections—something that is not evident at this stage.
In summary, the numerical values suggest that the market remains in a genuine supply shortage, with prices holding at elevated levels. This supports the scenario of a continued upward trend or an extended accumulation phase before any major move, as long as the Exchange Supply Ratio remains at these low levels.
Written by Arab Chain
