According to cryptoquant.com, bitcoin reserves on centralized exchanges have plummeted to levels not seen since November 19, 2018. The amount of bitcoin held on these digital trading platforms has been steadily declining since early June 2022.
Bitcoin Exchange Reserves Fall to 2018 Levels
Over the past month since July 11, 2024, a staggering 99,308 BTC have been withdrawn from exchanges, worth $5.96 billion. Currently, data from cryptoquant.com shows that centralized exchanges hold 2,679,880 BTC, worth about $161 billion based on the Bitcoin price as of Sunday, August 11. The last time reserves were this low was during the Bitcoin bear market on November 19, 2018.
After this date, the amount of Bitcoin stored on exchanges increased sharply, reaching an all-time high of 3,374,491 BTC on July 23, 2021. Over the next year, this figure gradually decreased, reaching 3,356,772 BTC on June 6, 2022. However, after the collapse of Terra and FTX, the amount of Bitcoin stored on exchanges decreased by 20.16%, settling at the current level of 2.67 million BTC.
In a trend that mirrors June 2016, Ethereum (ETH) reserves have also fallen to levels not seen in years. There are currently 16.8 million ETH stored on exchanges, a steep 18.64 million ETH drop from the all-time high of 35.44 million ETH set on June 4, 2020. Of that significant decline, cryptoquant.com shows that a whopping 11.44 million ETH has been withdrawn from trading platforms since September 15, 2022. At Ethereum’s current price as of August 11, that 11.44 million ETH represents a whopping $29.97 billion leaving exchanges.
The continued decline of Bitcoin and Ethereum reserves on centralized exchanges highlights the growing preference for non-custodial solutions, which is a positive development for both security and scarcity. As more users prioritize self-custody, crypto assets like Bitcoin become less liquid on exchanges, increasing its scarcity and potentially strengthening its value over time, benefiting long-term holders and reinforcing the principles of secure-your-own-keys and decentralized finance (defi).
