Bitcoin exchange balances hit a new low
Bitcoins are withdrawn from exchanges
The balance of bitcoins on cryptocurrency exchanges has dropped to 2.29 million coins, marking an all-time low. This was highlighted by Bitcoin enthusiast Vivek on his X account.
According to analytics platform Coinglass, the largest bitcoin reserves are currently held on Coinbase (748,000 BTC), Binance (567,000 BTC), and Bitfinex (390,000 BTC).
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Over the past month, a total of nearly 115,000 BTC were withdrawn from the top 20 exchanges. The largest outflows were seen on Coinbase (-58,119 BTC), Binance (-34,615 BTC), and Kraken (-10,306 BTC).
Why Bitcoins are being withdrawn from exchanges
The historic low in bitcoin balances on cryptocurrency exchanges is primarily due to investors seeking greater security for their assets.
Lessons from the past, such as the collapses of major exchanges like Mt. Gox and FTX, have convinced users of the need to store funds in personal wallets rather than centralized platforms. Additionally, advancements in technology, such as hardware wallets and multisignature solutions, have made off-exchange storage both safer and more convenient.
The declining bitcoin balance on exchanges also signals a growing interest in long-term investments. Many users prefer storing bitcoins in cold wallets, anticipating future price increases. This reduces the available supply for trading and creates potential upward pressure on the market.
Meanwhile, the number of bitcoin addresses with balances under 1 BTC continues to rise.
