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The cryptocurrency reserves held on digital asset exchanges have fallen to new lows, as some of the major exchanges have seen significant drops in the balance of bitcoin reserves. A few months ago, trading platforms had far more reserves of bitcoin on hand, and data on the chain shows that some exchanges have seen customers constantly drain 187,000 bitcoins ($ 2.1 billion) from the exchange’s owned cold wallets.
As of February, Coinbase had 1 million bitcoins under management, and today reserves are down by more than 9% as 92,000 bitcoins ($ 1 billion) left the exchange. Today, according to Bituniverse’s online trading balance tracker, the San Francisco trading platform has 908,560 BTC under management.
36,000 BTC ($ 408 million) has left Coinbase since news.Bitcoin.com’s reserves report was released on June 30, 2020. A number of major exchanges below Coinbase have also seen cold wallets dry up in the last few three months.
The second largest exchange in terms of bitcoin reserves held is Huobi, and the trading platform has dropped more than 53,000 BTC ($ 601 million) since June 30. Binance’s balances have remained the same as the exchange holds 266,000 BTC today and three months ago Binance held 269k BTC. Likewise, the fourth largest reserve holder, Bitfinex, hasn’t seen much movement in the past three months.
Three months ago, Okex had 240,000 BTC on hand, but today Okex only has 198,000 BTC in reserves. This means 42,000 BTC has left Okex since June as 17.5% have left the exchange in the past three months.
Statistics show that the top five cryptocurrency trading platforms over 187,000 BTC ($ 2.1 billion) have left these exchanges since the June report.
Just recently, Bitmex has had some legal issues with the US government and since the incident, many bitcoins have left the derivatives trading. Three months ago Bitmex had 224 BTC in reserves and today the exchange has only 113,000 in cold storage. Data from Onchain indicates that Bitmex has lost a whopping 49.55% in BTC reserves since June 30th.
At the time of publication, Glassnode “Exchange balance against Bitcoin“Statistics show that there are 2.7 million BTC held on exchanges today. Glassnode statistics indicate that on a limit of 21 million BTC, exchanges hold 12.85% of everything that will exist and 14, 59% of the 18.5 million BTC in circulation.
1.8 million BTC out of the total 2.7 million BTC held in exchanges are found in the top five cryptocurrency platforms in the world. The top five custody platforms by BTC reserve status include Coinbase, Huobi, Binance, Bitfinex, and Okex.
Foreign exchange balances have declined consecutively over the past 15 months, and the last time the balances were this low was around May 2019.
For many cryptocurrency enthusiasts and traders, the low trade balances suggest that users are storing assets on a non-custodial basis instead of leaving the funds to third parties. Data from Bituniverse and Glassnode also suggests that liquidity and selling pressure could decrease.
What do you think about the low number of bitcoins collectively held in global exchanges today? Let us know what you think about this topic in the comments below.
Image credits: Shutterstock, Pixabay, Wiki Commons, Bituniverse, Glassnode,
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