Binance Overtakes Coinbase As Largest Bitcoin Reserve Holder
As per recent reports, crypto giant Binance has now become the largest Bitcoin reserve holder for the first time ever. An “exchange reserve” is an indicator that indicates the total quantity of Bitcoin that is currently stored in the wallets of a centralized exchange.
What It Actually Indicates
When this metric’s value increases, it indicates that investors are currently depositing their coins to the exchange. On the other side, a decline means that holders are currently withdrawing their BTC from that exchange. Here is a graph that displays the trends in the reserves held by the major market platforms for Bitcoin over the past few years.
As can be seen from the above graph, the Bitcoin exchange reserves of almost all the major players have been declining sharply recently.
Rise Of A Clear Winner
The fall of FTX is the root cause of this rapid downward trend that has been occurring. Investors all over the market have become increasingly skeptical of centralized exchanges as a result of the bankruptcy of FTX.
Read More: SBF Resigns, John Ray III Joins As New FTX CEO
Therefore, they have been making considerable withdrawals in order to store their coins in wallets for which they hold the keys. However, one crypto exchange in particular has exhibited a very remarkable development. In contrast to the other exchanges, Binance’s reserve has actually increased during this period.
Following the collapse of FTX, Binance first noticed a significant decline in their reserve as well, but recently the exchange has seen a considerable rise in deposits. The exchange’s Bitcoin reserve has recently experienced a rapid increase that has not only more than made up for the prior drop but also well exceeded it.
The treasuries of Coinbase, which had previously held the title of being the largest exchange in terms of BTC reserves, have been surpassed by Binance’s reserves, which have now reached a new all-time high.
Market Reaction
At the time of composing, the price of Bitcoin is hovering at $16,000, a 4% decrease from the previous week. The value of the crypto king has decreased by 16% over the past 30 days.
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