Ethereum, Bitcoin, and Litecoin Yuriko NakaoAccording to Santiment, Bitcoin supply on exchanges fell to 13%, which is the lowest level in six months.The June low in Ether exchange reserves was 18%, which is the lowest ever recorded.According to market watchers, this suggests that any sell-offs might be less severe.Subscribe to our daily newsletter 10 Things Before The Opening Bell.Analysts say that the amount of bitcoin and other ether traders in exchanges has fallen dramatically relative to total supply in the last few weeks. This reduces the likelihood of another major sell-off in these cryptocurrencies.According to data from Santiment, a crypto analytics group, the ratio of bitcoin on exchanges to total coins in circulation fell to 13% in July. This is its lowest level in six months.Similar to the previous figures from Santiment, the percentage of total supply held on exchanges fell to 18% in June. This is the lowest recorded figure.Santiment tweet Santiment"The ratio bitcoin supply to exchanges has declined to its lowest level since January," Santiment stated. Santiment stated on Twitter that the six-month low is a positive sign as it usually indicates a lower risk of major BTC sales.This data shows the percentage of bitcoin in circulation that is held as reserves on exchanges such as Kraken, Binance and Coinbase. An increase in cryptocurrency reserves on exchanges means that more people are purchasing tokens and keeping them in their wallets. This makes it less likely for large-scale sell-offs.These reserves were high at the beginning of the bitcoin sell-off. The direction that bitcoin will take in the near- and medium-term can be predicted by exchange flows.Justin d'Anethan is the head of sales at crypto platform EQONEX. He stated that there has been an increase in outflows from exchanges. This is a good thing as it means that people are holding more coins to their private wallets. It also helps to reduce selling pressure.On Tuesday, Bitcoin was up 1.1% to $34,060 at Coinbase. Although it has recovered around 18% from its multi-monthly lows in June, Bitcoin is still about 50% below the April high of just over $65,000.Ether traded almost 5% higher on the Kraken exchange on June 30, at $2,306. It is up around 35% from June's three-month lows, but down 45% from May’s record highs.According to CoinShares weekly flows data, $39 million was poured into bitcoin by institutional investors in the week ending July 5, according to CoinShares. This highlights how the recent dip in the price has prompted big players to return to the market. According to data, Ether saw $17.7million inflows in the most recent week, partially reverseing outflows.
