Despite BTC’s price drop, Bitcoin held on the exchanges is 28% lower than last year – Exchanges Bitcoin News
While the price of Bitcoin is more than 40% lower than 90 days ago on March 29, the number of Bitcoins held on the exchanges has also been reduced. Last year, on the same day in June, 2.79 million bitcoins were withheld on crypto trading platforms and a year later around 28.67% of bitcoins left crypto exchanges. The decreasing amount of Bitcoin held on centralized exchanges suggests that the coins are being held for the long term and not being prepared for trading.
Data suggests that bitcoins are being removed from exchanges and stored in non-custody wallets for long-term storage
On March 29, 2021, the price was 42.93% higher, but 9.54% more Bitcoin (BTC) was also held on centralized exchanges. Additionally, the price of BTC was $ 9,165 per unit, and today, with BTC hovering above $ 33,000 per unit, the price is 262% higher than last year.
Interestingly, there was much more bitcoin on the exchanges on June 26, 2020, with statistics showing that 2.79 million bitcoin was held in foreign exchange reserves. Today, bitcoin held on exchanges is 28% lower, with data showing 1.99 million bitcoin on centralized trading platforms.
Last year, over a month later, on July 30, 2020, Bitcoin.com News reported a drop in trading balances. At the time, there were 2.6 million Bitcoin on the global exchanges and that metric was a 12-month low, fueling bullish optimism.
When bitcoin balances are reduced on centralized exchanges, market participants assume that these coins will be stored for the long term rather than waiting to be sold. Analysts believe that the lower pressure to sell is coming from Bitcoin users who store funds in unprotected private wallets.
However, there has been an increase in bitcoins held on the exchanges since April 2021, as April 20 was the low point of the year. On that day, data showed that 1.82 million were held on exchanges and since then balances have increased across the board by 9.34% to 1.99 million BTC, or $ 62 billion at today’s exchange rates.
As the price has been going down lately, there has been a small spike in forex deposits, offsetting the 90-day decline from March 29th to the present day. In March 2020, when the “Black Thursday” took place, more than 3 million BTC were held on the exchanges.
Coinbase holds the largest crypto reserve balance at $ 35 billion
Statistics shows that Coinbase is the largest exchange with the most bitcoins (BTC) on June 27, 2021, with 636,835 BTC, or more than $ 21 billion in bitcoin reserves. 3,550 BTC, or over $ 117 million, left Coinbase in the past 30 days, according to bybt.com/balance stats.
Coinbase is followed by Binance (341,722), Okex (323,552), Bitfinex (187,728), Huobi (156,277), Kraken (144,499) and Bitflyer (61,185). Though over 3,000 BTC left the exchange on Coinbase, Huobi left 23,335 BTC, or $ 774 million, the trading platform last month.
Adding stablecoins and Ethereum (ETH) to the mix and data from Bituniverse, Peckshield, Chain.info and Etherscan shows that Coinbase has more than $ 35 billion in reserves between stables, ETH and BTC.
With these three metrics taken together, reserve positions change according to stock market data, followed by Binance ($ 14.9 billion), Huobi ($ 12.8 billion), Kraken ($ 8.64 billion) and Okex (6 , $ 33 billion). Last year, crypto balances held in USD were much lower than they are today.
For example, Coinbase’s reserve value was 61% lower in July 2020 and, with its stablecoin, ETH and BTC reserves, was worth around $ 13.6 billion. Binance’s value of the same combination of reserves was 71.40% lower in USD. Despite the increase in value, both exchanges had more cryptocurrencies in reserve at this point in the past year.
What do you think of the number of bitcoins leaving exchanges? Let us know what you think on this matter in the comments below.
Photo credits: Shutterstock, Pixabay, Wiki Commons, Glassnode, Bybit.com,
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