Binance Data Shows Bitcoin Supply Ratio Hits Record Low, Signaling Renewed Accumulation Trend

Bitcoin’s supply ratio on Binance has dropped near 0.03, marking its lowest level since 2022 amid growing long-term accumulation trends.

Institutional and whale investors continue withdrawing Bitcoin from exchanges, reducing sell pressure and signaling renewed market confidence and holding strength.

Sustained Bitcoin support above $105,000 strengthens structural consolidation, setting the stage for the next expansion phase within the ongoing bullish cycle.

Binance data indicates that the Bitcoin Supply Ratio (ESR) has dropped to nearly 0.03, marking its lowest level since mid-2022. The continued decline suggests that investors are increasingly moving Bitcoin off exchanges, signaling a shift toward long-term holding.

Bitcoin Supply Ratio Reaches Multi-Year Low

The Bitcoin Supply Ratio, a key indicator of market behavior, has fallen sharply on Binance, the world’s largest cryptocurrency exchange by trading volume. Current data shows the ESR hovering near 0.03, the lowest since 2022. This ratio measures the percentage of Bitcoin held on exchanges compared to the total circulating supply.

A declining ESR generally indicates reduced liquidity available for sale, as investors transfer their assets to cold storage. Such movements often coincide with phases where institutional and whale investors accumulate positions. Market observers view this as a technical phase of reduced exchange supply that could precede upward price movement.

Bitcoin is currently trading near $113,000, following a mild retracement from its recent peak of $125,000. Despite this correction, the persistent fall in ESR reflects stable demand across major exchanges, including Binance.

Whales and Institutions Drive the Accumulation Phase

Market data suggests that large holders and institutions continue to remove substantial Bitcoin volumes from exchange wallets. Analysts interpret this behavior as renewed confidence in Bitcoin’s long-term valuation, consistent with prior late-stage accumulation cycles.

Historical patterns show similar declines in exchange balances before major market upswings. During previous bull phases, a drop in the ESR preceded multi-month rallies as available supply tightened. Current readings reinforce that trend, indicating that whales are maintaining their holdings instead of engaging in short-term trading.

The gradual withdrawal of Bitcoin from exchanges reduces potential sell pressure, creating a more balanced environment for price stability. With supply tightening and holding patterns strengthening, accumulation remains a dominant theme in the current cycle.

Structural Consolidation Within the Bullish Cycle

The present ESR trend points toward a structural consolidation within Bitcoin’s ongoing bullish phase. Market behavior aligns with earlier accumulation phases when liquidity contraction supported price strength over the medium term.

If Bitcoin sustains its position above the $105,000 support level, it may continue building the foundation for the next expansion phase. Reduced selling interest and stable off-exchange storage indicate that investors prefer to retain exposure rather than liquidate holdings.

As exchange supply continues to decline, Binance data suggests that market conditions remain resilient. This environment supports gradual appreciation rather than speculative volatility, reinforcing the long-term accumulation narrative across the broader crypto landscape.

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