What’s Behind Bitcoin And Ethereum’s Exchange Exodus? Record-Low Reserves Could Hold The Key
14 Octubre 2024 - 10:30AM
NEWSBTC
Crypto investors are not keen on dealing with cryptocurrency
trading platforms, which has resulted in the dwindling exchange
reserves of Bitcoin and Ethereum. Centralized exchanges on
Bitcoin and Ethereum hit a historic low after investors and crypto
enthusiasts opted for self-custody solutions for their virtual
assets. Related Reading: Uniswap: New Crypto Developments Lift UNI
Price Up by 17% – Details Staying Away From Cryptocurrency Trading
A recent trend showed that traders and other enthusiasts choose to
hold on to their crypto assets rather than sell them on Bitcoin and
Ethereum exchange platforms. They preferred direct ownership of
their assets using self-custody wallets, which created an
increasing demand for self-custody solutions. However, it led to a
decline in the liquidity of BTC and ETH on centralized exchanges.
Strengthening Bitcoin And Ethereum Values A positive consequence of
traders’ preference for self-custody solutions is the increasing
value of Bitcoin and Ethereum assets over time. Traders veering
away from cryptocurrency trading platforms create a sense of
scarcity, leading to the growth of its value. At the time of
writing, the price of Bitcoin is pegged at $64,842. Since hitting a
record-high of $73,000 in March this year, the price remains
somewhere between $66,000 and $49,000. Meanwhile, according to
Coinmarketcap, Ethereum is trading at $2,464. Bitcoin, Ethereum
Reserves Drop Bitcoin and Ethereum on centralized reserves took a
nosedive and hit a historic low early this month. As of October 13,
CryptoQuant’s chart showed that centralized exchanges for BTC
recorded an all-time low of 2,666,717 bitcoins. The highest amount
of Bitcoin was pegged at 3,361,854, which was recorded on June 8,
2022. After that period, Bitcoin went on a sharp decline. It hit
its lowest level early this month. In terms of volume, spot
exchanges have 1.1 million Bitcoin in reserves, while derivative
exchanges own 1.39 million reserves. By far, Binance owns 563,000
Bitcoin reserves, the largest crypto exchange by trading volume,
followed by Kraken with 112,3000 reserves. On the other hand,
Coinbase Advanced holds 830,530 Bitcoin reserves and Coinbase Prime
has 3,000 reserves. Ethereum’s centralized exchanges also face a
similar dilemma to Bitcoin wherein its reserves continue to plummet
and hit a record low of 18.7 million. Related Reading: Tron Token
Burn: 10 Million Gone—What Does It Mean For TRX Price? According to
CryptoQuant, derivative exchanges hold a big portion of Ethereum
with 10.3 million in reserves, while 8.4 million Ethereum reserves
are being kept at spot exchanges. Historically, Ethereum’s all-time
high in reserves was 2,310,823 recorded on 6 September 2022. Since
that period, Ethereum reserves in central exchanges continue to
plunge. In terms of reserves, Coinbase has a large reserve of 4.5
million Ethereum, followed by Binance with 3.6 million Ethereum.
Kraken also holds a significant Ethereum reserve of 1.3 million.
Featured image from Pexels, chart from TradingView
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