While the price of bitcoin is down 38% from its $69K value three months ago, the volume of bitcoin on exchanges is at its lowest figure since April 2021. At the end of July last year, there were 2.59 million bitcoins held by crypto. trading platforms, and exchanges today have only 2.36 million, meaning there is 8.8% less bitcoin on exchanges than there were six months ago.
Bitcoin exchange reserves are 8% lower than bitcoin held on exchanges 6 months ago
According to current statistics, there are 2.363 million bitcoins, or $100 billion worth, of the major crypto assets held on exchanges. The current value of bitcoin (BTC) held by centralized exchanges is equivalent to 12.36% of BTC’s total market capitalization of $809 billion.
While 2.363 million is a significant fraction, it is 8.88% less than the number of bitcoins held on exchanges as of July 25, 2021. Lots of crypto market participants, and the fact that there is less BTC on exchanges means less selling pressure going forward.
Metrics indicate that the last time bitcoin exchange reserves were so low was ten months ago in April 2021. Combined figures from Bituniverse, Peckshield, Etherscan, and Chain.info show that exchange Coinbase holds the most bitcoin (BTC) today, with 853,530. BTC kept in reserve.
Coinbase’s BTC holdings are worth 35% of the current $100 billion of BTC held on exchanges. With 339,870 BTC worth $14.5 billion using current bitcoin exchange rates, Binance is the second largest bitcoin holder in terms of exchanges.
Ethereum Exchange Reserves Plummet, Miners Sell Holdings
At the same time, the same can be said about the number of Ethereum (ETH) held on centralized exchanges. Data from Cryptoquant.com shows that there are 17 million Ether on exchanges today, but that amount has been declining significantly since May 2021. In May last year, 21.9 million Ethereum were held in crypto exchanges.
This means that around 22.37% of ETH held on exchanges have left the market environment for alternative solutions. On the other hand, most of the ETH that left centralized exchanges since last May can be transferred to decentralized exchange (DX) platforms.
Currently, the most active crypto exchange in terms of Ether trading volume, Binance has 3.59 million ETH reserves. While less BTC and ETH on exchanges may ease selling pressure, indicators suggest that BTC miners are selling bitcoin.
According to data from Glassnode, miner holdings turned negative for the first time in two months on February 5, 2022. At the time of writing, data from Cryptoquant.com indicates that mining entities hold approximately 1.86 million BTC.
What do you think about the number of bitcoins held on crypto exchange trading platforms? Let us know what you think about this topic in the comment section below.
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