Binance overtakes Coinbase to become the largest Bitcoin reserve holder
Data shows that Binance has now passed Coinbase to become the exchange with the largest Bitcoin reserve in the market.
Bitcoin Reserve Of Crypto Exchange Binance has skyrocketed lately
As pointed out by an analyst in a CryptoQuant post, Binance has become the largest BTC reserve holder for the first time ever.
The “exchange reserve” is an indicator that measures the total amount of Bitcoin currently stored in the wallets of a centralized exchange.
When the value of this metric rises, it means that investors are depositing their coins on the exchange right now. On the other hand, a decline suggests that holders are taking their BTC out of that exchange at the moment.
Now, here is a chart showing the trends in Bitcoin exchange reserves for the main platforms in the market over the past few years:
Looks like most of the exchanges have seen a large amount of outflows in the last couple of weeks | Source: CryptoQuant
As you can see in the graph above, the Bitcoin exchange reserves of almost all the major players have fallen sharply recently.
The reason behind this rapid downtrend has been the collapse of FTX. The exchange’s bankruptcy has made investors around the market more wary of centralized platforms, leading them to make significant withdrawals to keep their coins in the wallets they own the keys to.
However, one stock exchange has shown an exceptional trend. Rather, Binance’s reserve has increased during this period, unlike the other exchanges.
At first, Binance also observed a big sting in the reserve after FTX went down, but in the last few days, the exchange has received a very large amount of deposits.
This latest rapid increase in the exchange’s Bitcoin reserve has not only compensated for the initial decline, but has also far surpassed the value before it.
Binance’s reserves have now set a new all-time high, and have also passed the coffers of crypto exchange Coinbase, which previously held the largest exchange in terms of BTC reserves.
This means that for the first time ever, Binance takes the place as the largest reserve holder in the BTC market.
At the time of writing, Bitcoin’s price is hovering around $16k, down 4% in the last week. Over the past month, the crypto has lost 16% in value.
The chart below shows the trend in the price of the coin over the last five days.
Looks like the value of the crypto has declined over the past 24 hours | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com