Bitcoin News and Finance Despite BTC’s Price Drop, Bitcoin Held on Exchanges Is 28% Lower Than Last Year Skip to main content

Despite BTC’s Price Drop, Bitcoin Held on Exchanges Is 28% Lower Than Last Year

Despite BTC's Price Drop, Bitcoin Held on Exchanges Is 28% Lower Than Last Year

While the price of bitcoin is more than 40% lower than it was 90 days ago on March 29, the number of bitcoin held on exchanges has also been reduced. Last year on the same day in June, 2.79 million bitcoin was retained on crypto trading platforms and a year later roughly 28.67% of the bitcoin held left crypto exchanges. The decreasing quantity of bitcoin kept on centralized exchanges suggests the coins are being held in long-term storage rather than being prepared for trading.

Data Suggests Bitcoins Are Being Removed From Exchanges and Into Noncustodial Wallets for Long Term Storage

On March 29, 2021, the price was 42.93% higher but there was also 9.54% more bitcoin (BTC) held on centralized exchanges. Moreover, the price of BTC was $9,165 per unit, and today as BTC hovers above $33K per unit the price is 262% higher than last year.

Interestingly, there was a whole lot more bitcoin on exchanges on June 26, 2020, with statistics showing 2.79 million bitcoin was held in exchange reserves. Today, bitcoin held on exchanges is 28% lower with data showing 1.99 million bitcoin on centralized trading platforms.

Despite BTC's Price Drop, Bitcoin Held on Exchanges Is 28% Lower Than Last Year
(Left Chart) Bitcoin balances on exchanges on June 26, 2020, via Glassnode data. (Right Chart) Bitcoin balances on exchanges on June 27, 2021, via Bybit.com data.

Last year, Bitcoin.com News reported on exchange balances dropping a month later on July 30, 2020. At that point in time, there was 2.6 million bitcoin on global exchanges and that metric was a 12 month low which fueled bullish optimism.

When bitcoin balances are reduced on centralized exchanges, market participants assume these coins are being held in long-term storage instead of waiting to be sold. Analysts presume that lower selling pressure stems from bitcoin users storing funds in noncustodial private wallets.

Despite BTC's Price Drop, Bitcoin Held on Exchanges Is 28% Lower Than Last Year
Bitcoin balances on exchanges from February 2021 to June 27, 2021.

However, since April 2021, there’s been an increase in bitcoin held on exchanges as April 20 was the lowest point of the year. On that day, data shows that 1.82 million was held on exchanges and since then balances across the board have spiked by 9.34% to 1.99 million BTC or $62 billion worth using today’s exchange rates.

So as the price has dropped lower in recent times, there’s been a small bump up in exchange deposits, which balances the 90-day drop from March 29 to now. In March 2020, when ‘Black Thursday’ took place there were more than 3 million BTC held on exchanges.

Coinbase Holds the Largest Crypto Reserve Balance With $35 Billion

Statistics show the top exchange with the most bitcoin (BTC) on June 27, 2021, is Coinbase with 636,835 BTC or more than $21 billion in bitcoin reserves. 3,550 BTC or over $117 million left Coinbase during the last 30 days according to bybt.com/balance stats.

Coinbase is followed by Binance (341,722), Okex (323,552), Bitfinex(187,728), Huobi (156,277), Kraken (144,499), and Bitflyer (61,185). Even though Coinbase saw over 3K in BTC leave the exchange, Huobi saw 23,335 BTC or $774 million exit the trading platform during the last month.

Adding stablecoins and ethereum (ETH) into the mix and data from Bituniverse, Peckshield, Chain.info, and Etherscan shows that Coinbase has more than $35 billion in reserves between stables, ETH, and BTC.

With those three metrics combined, the reserve positions by exchange data changes, with Binance ($14.9 billion), Huobi ($12.8 billion), Kraken ($8.64 billion), and Okex ($6.33 billion) following respectively. Last year, those crypto balances held in USD value were much lower than today.

For example, Coinbase’s reserve value was 61% lower in July 2020 and held around $13.6 billion in value with its stablecoin, ETH, and BTC reserves. Binance’s value of the same combination of reserves was 71.40% lower in USD value. Despite the rise in value, at that time last year, both exchanges had more cryptocurrencies held in reserve.

What do you think about the number of bitcoins leaving exchanges? Let us know what you think about this subject in the comments section below.

Comments

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Blogarama - Blog Directory