The cryptocurrency reserves held by digital asset exchanges have fallen to a new low, as the balance of Bitcoin reserves on some top exchanges has fallen sharply. A few months ago, there were more Bitcoin reserves on hand on the trading platform, and on-chain data showed that some exchanges had seen customers steadily consume 187,000 Bitcoins ($2.1B) from cold wallets owned by the exchanges .
In February, Coinbase managed 1 million bitcoins, and today’s reserves have fallen by 9% because 92,000 bitcoins ($1B) left the exchange. Today, according to Bituniverse’s online transaction balance ranking tracker, the San Francisco trading platform manages 908,560 BTC.
Since news.Bitcoin.com’s reserve report was released on June 30, 2020, Coinbase has left 36,000 BTC ($408 million). In the past three months, many top exchanges under Coinbase have also found that cold wallets have been exhausted.
In terms of Bitcoin holdings, the second largest exchange is Huobi, and the trading platform has fallen 53,000 BTC (601 million U.S. dollars) since June 30. Binance’s balance remains the same, the exchange holds 266,000 BTC today, while three months ago, Binance held 269,000 BTC. Similarly, Bitfinex, the fourth largest reserve holder, has not seen much change in the past three months.
Three months ago, Okex had 240,000 BTC on hand, but today, Okex has only 198,000 BTC in reserves. This means that Okex has left 42,000 BTC since June, and 17.5% of transactions that have left the exchange in the last three months.
Statistics show that since the June report, the top five crypto trading platforms with more than 187,000 BTC ($2.1B) have left these exchanges.
Just recently, Bitmex had a legal dispute with the US government. Since the incident, many Bitcoins have left the derivatives exchange. Three months ago, Bitmex’s reserves were 224 BTC, but now the exchange has only 113,000 cold storage. Data on the chain shows that since June 30, Bitmex’s BTC reserves have lost as much as 49.55%.
At the time of publication, Glassnode’s “Foreign exchange balances and BitcoinData shows that there are 2.7 million BTC held on the exchange today. Statistics from Glassnode show that among the 21 million BTC caps, the exchange holds 12.85% of the total amount that will exist, and 14.59% of the 18.5 million BTC in circulation.
Of the 2.7 million BTC held by the exchange, 1.8 million BTC are among the top five crypto trading platforms in the world. The top five custodial platforms by BTC reserve status include Coinbase, Huobi, Binance, Bitfinex and Okex.
The exchange balance has been continuously falling for the past 15 months, and the last time such a low balance was around May 2019. For many crypto enthusiasts and traders, a low balance on an exchange indicates that users are storing assets in a non-custodial manner, rather than leaving third-party funds.
Data from Bituniverse and Glassnode also indicate that liquidity and selling pressure may decrease.
What do you think of the small amount of Bitcoin collectively held in today’s global exchanges? Please tell us your thoughts on this topic in the comments below.
Picture Credits: Shutterstock, Pixabay, Wiki Commons, Bituniverse, Glassnode,
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