Similarly, Bitcoin reserves on centralized exchanges have also reached historic lows, with current figures standing at 2,666,717 as of October 13, 2023.

This decline in reserves is largely attributed to the growing popularity of self-custody wallets among traders, which has diminished liquidity on centralized platforms.

As more crypto investors choose self-custody solutions, the reserves of both Bitcoin and Ethereum on centralized exchanges continue to decline.

Currently, Coinbase holds the largest Ethereum reserve at 4.5 million, followed by Binance with 3.6 million and Kraken with 1.3 million.

In the broader market, Bitcoin is trading at approximately $64,842, having fluctuated between $66,000 and $49,000 since reaching a record high of $73,000 in March 2023.

Historically, the highest recorded Bitcoin reserves were 3,361,854 on June 8, 2022, after which a sharp decline was observed.

The trend towards self-custody is fostering a sense of scarcity in the market, which is positively influencing the values of both Bitcoin and Ethereum over time.

Ethereum's reserves on centralized exchanges have plummeted to a record low of 18.7 million, a significant drop from its peak of 2,310,823 on September 6, 2022.