Bitcoin Holdings on Major Exchanges Drop 100,000 BTC in Three Months, Easing Sell Pressure

Bitcoin holdings at major cryptocurrency exchanges have fallen by about 100,000 BTC over the past three months, suggesting supply pressure is easing as less sellable inventory remains on trading platforms.

Cointelegraph reported on May 8 that Bitcoin reserves at major exchanges including Binance, OKX and Gemini have dropped sharply in recent months.

CryptoQuant data show Binance’s Bitcoin holdings fell to about 620,000 BTC from roughly 670,000 BTC in February. That is the lowest level since December 2023.

OKX’s holdings declined to about 102,000 BTC from around 132,000 BTC in March. Gemini’s reserves also fell, dropping to about 95,000 BTC from roughly 114,800 BTC.

The total amount of Bitcoin that left the three exchanges was about 100,000 BTC. At current prices, that is worth about $8 billion.

CryptoQuant analyst Amr Taha highlighted the simultaneous decline across multiple exchanges. He said price volatility could increase if exchange supply continues to shrink and spot buying demand picks up.

Accumulation by long-term holders is also gaining strength. CryptoQuant said Bitcoin held in accumulator addresses rose to about 264,000 BTC on May 6 from roughly 164,440 BTC on April 23.

Bitcoin supply in the over-the-counter, or OTC, market is also declining. Lower OTC balances suggest less Bitcoin is available for large trades between institutions.

Derivatives markets also pointed to stronger buying. On Binance, net taker volume over the past seven days climbed to positive $2.63 billion from about negative $1 billion in March.