Binance’s Bitcoin Reserves Drop as Retail Flow Moves to Coinbase: CryptoQuant

Bitcoin

(BTC)
is
flowing
from
Binance
to
Coinbase,
according
to

on-chain
data
compiled
by
CryptoQuant.

Since
yesterday,
Coinbase’s
reserves
have
increased
by
around
12,000
BTC,
while
Binance’s
have
decreased
by
5,000
BTC,
the
research
firm
wrote
in
a
recent
note.

“The
decrease
in
Bitcoin
reserves
on
Binance
appears
to
be
due
to
retail
outflows,”
Bradley
Park,
a
Web
3
analyst
at
CryptoQuant
wrote
to
CoinDesk
in
a
note.

“The
market
is
still
nervous
about
the
recent
legal
implications
against
Binance,”
Greta
Yuan,
head
of
research
at
Hong
Kong-based
digital-asset
platform
VDX
said
in
a
note
to
CoinDesk.
“In
the
short
term,
we
will
see
more
users
move
funds
to
compliant
or
licensed
exchanges
for
peace
of
mind.”

“Coinbase
has
stood
the
test
of
time,”
she
said.

Some

analysts
say
that

Binance’s
recent
settlement
with
the
U.S.
Department
of
Justice
was
the
last
hurdle
to
getting
approval
for
a
spot
bitcoin
ETF,
and
that
is
also
affecting
fund
flows.

“With
this
plea
deal,
the
expectations
for
a
spot
Bitcoin
ETF
might
have
increased
to
100%
as
the
industry
will
be
forced
to
follow
the
rules
that
TradFi
firms
must
follow,”
crypto
services
provider
Matrixport
wrote.

CryptoQuant
identified
a
1,000
BTC
withdrawal
from
Coinbase,
and
Park
suggested
the
transaction
was
an
“institutional
over-the-counter
(OTC)
trade
and
can
be
seen
as
anticipation
of
approval
of
ETFs.”

CryptoQuant
data
shows
that
exchange
reserves
of
bitcoin
have
been
steadily
decreasing
throughout
the
year,
which
is
considered
to
be
a
bullish
sign.
However,

some
analysts
say
that
since
last
year’s
collapse
of
FTX,
trust
in
centralized
exchanges
has
diminished
and
investors
are
keeping
their
holdings
elsewhere.