Analysis

Bitcoin and ETH reserves on exchanges hit a 6-month low

While the Bitcoin (BTC) price is 38% below the all-time high (ATH) of $69,000 set three months ago, statistical currently shows that 2,363 million BTC (worth $102 billion) are held on exchanges, or 12.36% of BTC’s total $826 billion market cap.

While not small, 2.363 million Bitcoin is 8.88% less than the amount of Bitcoin held on exchanges on July 25, 2021.

Too Many Crypto Market Participants and Forecasts The drop in BTC stocks on exchanges means there will be less selling pressure going forward.

Bitcoins are held on exchanges | Source: Cryptoquant.com

The last time BTC reserves hit such low levels on an exchange was 10 months ago, in April 2021. Aggregated statistics from Bituniverse, Peckshield, Etherscan and Chain.info show that Coinbase holds the most with 853,530 BTC.

Coinbase’s holdings represent 35% of the total $102 billion worth of BTC currently held on exchanges. In second place is Binance with 339,870 BTC worth $14.5 billion at current exchange rates.

ETH reserves on the exchange also fell

Meanwhile, the amount of Ethereum (ETH) held on centralized exchanges is in a similar situation. Data from Cryptoquant.com shows that 17 million ETH is currently held on exchanges, significantly less than the 21.9 million ETH in May 2021.

This means that around 22.37% of ETH held on exchanges has exited the market for alternatives. On the other hand, much of the ETH that has left centralized exchanges since last May may have been moved to decentralized exchanges (DEXs).

Currently, the exchange holding the most Ethereum is Binance, which holds 3.59 million ETH. While less BTC and ETH on exchanges could ease the selling pressure, the numbers show miners are already selling Bitcoin.

Data from Glassnode shows On February 5, 2022, miner holdings fell for the first time in two months. Statistics from Cointelegraph at the time of writing. Cryptoquant.comthere are around 1.86 million BTC held by miners.

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

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