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Binance holds the most amount of Bitcoin on exchanges after roles have reversed with Coinbase

Exchange balance refers to the amount of Bitcoin sitting on exchanges, and it was following a downtrend since January 2022 for both Coinbase and Binance when suddenly Binance’s exchange balance took a turn and started to spike in May. It’s still increasing, while both overall and Coinbase’s exchange balance continue to fall.

Bitcoin Exchange Balance (via Glassnode)

The chart above shows the cumulative Bitcoin exchange balance, Bitcoin price, and the exchange balances of both exchange giants Binance and Coinbase.

The green line representing the cumulative exchange balance has followed a sharp downtrend since February. At the beginning of the year, there were more than 2,6 million Bitcoins on exchanges. This number is now below 2,4 million, proving a net outflow of 200,000 Bitcoins.

This means that Bitcoin supply has been removed from exchanges, indicating a long-term bullish holding tendency.

Coinbase

Coinbase has been following the same trend with the overall balance. The exchange held nearly 690,000 Bitcoins at the beginning of the year and fell below 560,000 in eight months.

Bitcoin Exchange Net Position Change (Source: Glassnode)

The chart above shows the movements of coins on Coinbase. Red lines represent Bitcoins leaving the exchange, while greens indicate incoming balances. Coinbase has seen a considerable amount of Bitcoin withdrawn since the beginning of the year. Moreover, the amounts taken out doubled once between March and May; and again in July.

The fact that U.S institutions prefer Coinbase might have played a role in these transactions. When faced with a bear market, institutions are more likely to operate on a buy-and-hold basis, which might have motivated them to pull their Bitcoins out of Coinbase.

Binance

Even though getting caught on the same downtrend at the beginning of the year, Binance ended up with more Bitcoins than January. The exchange started the year with 586,000 Bitcoins, fell below 560,000 until May, and ended up at 623,000 Bitcoins as of August.

The chart above reflects the shrinking Bitcoin reserves between February and May, which…

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