Bitcoin exchange reserves have declined significantly, dropping 12.5% since January 1, 2024, to 2.6 million BTC. This reduction marks the lowest point for Bitcoin reserves on exchanges this year. Analysts suggest that this trend could lead to a 'supply shock,' as the current situation is deemed unsustainable. The decrease in Bitcoin reserves indicates fewer sellers in the market, potentially setting the stage for a major price movement. Additionally, Ethereum supply on exchanges has reached a nine-year low, highlighting a broader trend of diminishing cryptocurrency reserves on exchanges.