Bitcoin supply on exchanges drops to 8-year low. Will BTC set a new all-time high?

**Bitcoin Exchange Supply Drops to 8-Year Low, Boosting Hopes for a Bullish Rally**

Bitcoin's supply on exchanges has plummeted to 7.53%, marking its lowest level since 2018, according to blockchain analytics firm Santiment. This shift signals growing investor confidence as more BTC moves into self-custody, reducing the amount available for immediate selling.

Historically, a decline in exchange supply is seen as a bullish indicator, as it indicates less short-term sell pressure. Institutional investors have also played a key role in Bitcoin’s recent price movements, with exchange-traded funds (ETFs) witnessing steady inflows since March 14. This surge in institutional demand helped Bitcoin recover more than 10% after a period of stagnation from February 10 to March 13, during which BTC fell 17%.

Market analysts note that Bitcoin's price trends are evolving. While past cycles saw bear markets triggered by 50-80% declines, Bitcoin’s growing maturity means even a 30% drop now raises concerns. The Short-Term Holder Market Value to Realized Value (MVRV) ratio, a key on-chain metric, recently showed bearish sentiment but is expected to improve, potentially fueling a relief rally.

As of now, Bitcoin is trading at $87,653, down about 19% from its all-time high of $108,786. However, with dwindling exchange supply and renewed institutional interest, a bullish reversal could be on the horizon.