Bitcoin supply on exchanges has fallen to a new low since 2018, when the BTC price was $6.9k. This is another red-flag to take your crypto off exchanges.

With all the drama and debate around the credibility of exchanges holding your crypto, exchanges have now released their own proof of reserves to gain trust and assure customers that they have enough crypto for their needs but one trend is clearly saying otherwise.

The bitcoin supply on exchanges has just fallen to a new low since April of 2018, when the BTC price was just $6.9k and there were millions of fewer users on exchanges.

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Chart from BTC_Archive on twitter

This trend clearly suggests that overall exchanges are having fewer and fewer crypto and its obvious that this is not proportional to the rising user numbers. So at one point many exchanges wont have enough crypto let every user withdraw in other words are not holding their assets 1:1 as hoped.

Now we got a lot of proof of reserves suggesting that some exchanges indeed have good balance sheets but trusting those reports is an other question. ANd to be honest I would personally not want to take that risk with my money and be on the safer side by not having most of my crypto on exchanges and only have some there for trading actively or in the process of converting to fiat.