According to CryptoQuant’s data on May 10, Bitcoin reserves in centralized exchanges such as Binance and Coinbase experienced a significant decline in Q4 2022. The reserves remained stable in April despite the prices soaring from $20,000 to $31,000 during that period. Exchange Bitcoin Reserves Rapidly Shrinking Bitcoin exchange “reserves” is a metric that tracks the amount of BTC held by centralized exchanges at any given time. Typically, the interaction between coin holders and exchanges can be used to gauge sentiment and their price expectation of the coin shortly. Related Reading: Bitcoin Supply Is Moving From American Holders To Asian Wallets: Glassnode An example of reserves falling is when there is a sudden outflow from exchanges. This could indicate that users are optimistic and store their assets in non-custodial wallets. However, it’s important to note that this may not always be the reason for outflows. They can also be caused by fundamental factors such as hacks or regulatory concerns – as seen recently with Binance. Conversely, Bitcoin inflow to exchanges may drive the ramp’s reserves higher. Even so, this is inter ..
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