Bitcoin Balance on Crypto Exchange Shrinks, on Binance Reaches 90 Thousand BTC

For investors and players in the crypto exchange, of course paying attention to Bitcoin is the main thing. Because, bitcoin balances can describe how the crypto moves in general.

For example, when the market is healthy and mature, less BTC will be traded and people will view the asset as a long-term investment.

Development of Bitcoin Balance on Binance

On Friday (23/12/2022) the number of BTC on Binance was around 565,000 BTC. Even though the previous Bitcoin figure was at 655,000 BTC this December, quoted from Cryptoslate.

If calculated, around US $ 1 billion for BTC has been stored in the world’s largest crypto exchange.

The 90,000 BTC difference in Bitcoin balance occurred in the middle of the week of December.

An analysis of on-chain data from CryptoSlate illustrates that more than US$600 million worth of BTC was withdrawn from Binance in one day.

If you look at the net flow of BTC with the value of the transactions displayed, it is the retail market that is largely responsible for the withdrawal in December.

The chart below shows that incoming Bitcoin balances range from less than US$10K to more than US$10M.

However, inflows with a value of less than US$10k represent the largest inflows on Binance through 2021.

Since 2021 until now, large transfers with a value of between US$1 million and US$10 million are happening as part of the incoming and outgoing flows on Binance.

If you compare Binance with other crypto exchanges, the reduction in BTC balances is indeed widespread.

However, events on Binance are looking particularly dire this month. Meanwhile, other crypto exchanges such as Coinbase, Kraken, Gemini, and Bitfines only decreased slightly.

The only increase in the number of Bitcoins is Bitfines and Coinbase in general is shrinking with holdings of only 2.5 percent of the overall BTC supply.

Indeed, the reduced number of BTC balances on Binance is not a major problem or sign. However, the exchange will try to run business as usual to prevent possible chaos that could occur.

That said, comparing Binance’s outflows to FTX’s outflows shows that this can be concerning.

Beginning in 2022, FTX has around 150,000 BTC. Then there was a sharp spike in the spring and by June 2022 the number of BTC was only 70,000 in 2 weeks.

Heavy outflows fueled the bourse’s decline, representing its lowest balance in two years.

FTX then went bankrupt and triggered a global crash in the crypto world and the effects are still being felt today.

The 70,000 BTC that came out to trigger balance issues at FTX is certainly a lot less than the 90,000 BTC that came out of Binance in a week.

However, no one knows whether this Bitcoin balance can increase in the future or even decrease far until 2023.