Bitcoin (BTC), reserves at major cryptocurrency exchanges, have fallen to the lowest levels since 2023. Binance, OKX, and Gemini all saw nearly 100,000 BTC withdraw from their accounts in less than 3 months.
In the last two weeks, the cohort’s holdings increased by 60%.
Bitcoin Exchange Reserves Fall to Two-Year Low
Amr Taha, Crypto Analyst noted Binance’s, OKX’s and Gemini’s Bitcoin reserve has dropped dramatically since February. Binance’s reserves dropped to approximately 620,000 BTC from around 670,000 BTC at the end of February. Binance has now seen its holdings fall to levels not seen since December 2023.
OKX followed a similar trend. The Bitcoin reserves of the exchange fell this week to approximately 102,000 BTC, down from almost 132,000 BTC at the beginning of March. Gemini experienced steady outflows as well, falling to 95,000 BTC compared with 114 800 BTC at the beginning of February.
BTC multiple-exchange reserve. CryptoQuant
The combined losses of the three exchanges totaled nearly 100,000 BTC. That’s worth more than $8 billion today.
Taha stated that an outflow from multiple exchanges is more significant than a decline isolated to a single one. A smaller number of coins available on the trading platform can cause a price increase when spot demand is strong.
Move! coincides A shrinking OTC account can reduce the amount of Bitcoin available for large private transactions outside exchanges. Reduced OTC accounts can limit the Bitcoins available for private large-scale transactions.
In the latest OTC 30-day balance change, there was a net decrease of 24,940 BTC. However, on February 8, after Bitcoin fell to $60,000 USD and the same measure had reached nearly 25,300 BTC. This reversal indicates that OTC inflows are significantly lower since February’s sell-off.
Bitcoin OTC balance. Source: CryptoQuant
Related: Bitcoin Bollinger Bands push key breakout as creator acts on positive signal
“Accumulator” Binance users are now positive about the market
During the most recent recovery phase, long-term Bitcoin participants have increased their Bitcoin accumulation. CryptoQuant data shows On May 6, demand for accumulator addresses increased to 264,000 BTC from 164440 BTC at the end of April. On March 15, the same number fell below 100,000 BTC after reaching a peak of 205,000 BTC in February.
Demand for Bitcoin from accumulator accounts Source: CryptoQuant
Bitcoin recovered to $82,800 during the same period, which indicates that there was a stronger buy-in by long term holders.
The derivatives market also includes strengthened The recent rally was a success. Binance’s 7-day net-taker volume has moved from around -$1bn (seller dominated) at the end of March, to +$2.63bn (buyer dominated) as of Thursday.
Binance BTC net taker volume over the last seven days. Source: CryptoQuant
Related: VanEck’s Sigel sees Bitcoin reaching $1M within five years
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Source: cointelegraph.com
