Summary:
Bitcoin reserves on exchanges have hit a 5-year low, dropping to levels seen in 2018.
A total of 99,308 BTC, valued at $5.96 billion, has been withdrawn from exchanges in the last month.
Current reserves stand at 2,679,880 BTC, worth approximately $161 billion.
The decline in reserves reflects a growing preference for non-custodial solutions.
Ethereum reserves also decreased significantly, with 11.44 million ETH withdrawn since September 2022.
According to data from cryptoquant.com, bitcoin reserves on centralized exchanges have plummeted to levels not seen since November 19, 2018. Over the past month, starting from July 11, 2024, a staggering 99,308 BTC, valued at $5.96 billion, has been withdrawn from exchanges. Currently, centralized exchanges hold 2,679,880 BTC, worth approximately $161 billion based on bitcoin rates as of August 11.
Bitcoin Exchange Reserves Dip to 2018 Levels
The last time reserves were this low was during the bitcoin bear market on November 19, 2018. Following that date, the amount of bitcoin stored on exchanges surged, reaching an all-time high of 3,374,491 BTC on July 23, 2021. However, this figure gradually decreased, hitting 3,356,772 BTC on June 6, 2022. The Terra and FTX collapses contributed to a 20.16% drop in the number of bitcoin held on exchanges, settling at the current level of 2.67 million BTC.
Bitcoin exchange reserves over the last 30 days according to cryptoquant.com metrics on August 11, 2024.
In a similar trend, ethereum (ETH) reserves have also dwindled to levels not seen in years. Currently, exchanges are holding 16.8 million ether, a steep drop from the record high of 35.44 million ETH set on June 4, 2020. Since September 15, 2022, 11.44 million ether has been withdrawn from trading platforms, amounting to a value of $29.97 billion.
The continued decline in bitcoin and ether reserves on centralized exchanges highlights a growing preference for non-custodial solutions, promoting both security and scarcity. As more users prioritize self-custody, crypto assets like bitcoin become less liquid on exchanges, potentially strengthening their value over time and benefiting long-term holders.
What do you think about the depletion of bitcoin reserves on centralized exchanges? Share your thoughts in the comments below.
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