Ahmed Ali Recent data reveals that as of July 11, 2023, approximately 2,086,034 bitcoins were held on centralized trading platforms. This figure indicates a decline of 154,160 bitcoins compared to the number held on April 30, 72 days earlier. Notably, the quantity of bitcoins stored on exchanges has significantly reduced since July 31, 2020, when the reserves amounted to nearly 3 million bitcoins.
Diminishing Bitcoin Holdings on Centralized Exchanges
Data from cryptoquant.com illustrates a consistent decrease in bitcoins held on exchange reserves over the past 2 years and 11 months. On July 31, 2020, exchange metrics indicated that 2,941,655 bitcoins were stored on exchanges. Presently, this number has fallen to 2,086,034. Consequently, over the course of 1,075 days, customers have withdrawn a total of 855,621 bitcoins from centralized trading platforms.
By averaging the BTC withdrawals over the span of 1,075 days, the daily rate of withdrawal amounts to slightly less than 796 BTC. Considering the current block reward of 6.25 BTC, approximately 900 new bitcoins are issued each day.
From April 30, 2023, onwards, approximately 154,160 bitcoins have been withdrawn from exchanges, leaving them with a reserve balance of 2,240,194 bitcoins. According to Bitcoin reserve balance data from coinglass.com, Binance experienced a reduction of 18,566.71 bitcoins in the past 30 days. During the same period, Coinbase witnessed a withdrawal of 38,253.59 bitcoins, while OKX saw around 9,403 bitcoins being withdrawn. Additionally, Kraken, the San Francisco-based crypto exchange, recorded a withdrawal of 8,544 bitcoins in the past month.
When the supply of bitcoins available for purchase on exchanges diminishes, the principles of supply and demand suggest that, if demand remains steady or increases, the price should rise. This phenomenon has often been observed in the Bitcoin universe, as the perception of BTC becoming a scarcer resource tends to drive up the price through supply squeezes. Furthermore, in 289 days, following the halving event, the total supply of newly minted bitcoins entering the market will notably decrease.
The data also indicates that the remaining circulating supply of BTC, not held by exchanges, is managed by market makers, third-party custodians utilizing cold storage services for institutional and high-net-worth clients, layer two (L2) solutions like Lightning Network, and numerous individuals who employ self-custodial wallets in hot or cold wallet configurations. Recent trends show a shift towards these alternatives, as storing funds on exchanges has become less favored. The collapse of platforms such as FTX and Voyager has further accelerated the withdrawal of bitcoins from these businesses.
We would like to hear your thoughts and opinions on the subject of bitcoins being removed from exchanges. Please feel free to share your insights in the comments section below.
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Frequently Asked Questions (FAQs) about bitcoin withdrawals
How many bitcoins have been withdrawn from exchanges since July 2020?
Since July 2020, over 855,000 bitcoins have been withdrawn from exchanges.
What is the current number of bitcoins held on exchanges?
As of July 11, 2023, approximately 2,086,034 bitcoins were held on centralized trading platforms.
How has the number of bitcoins on exchanges changed over time?
The number of bitcoins on exchanges has significantly dropped since July 31, 2020, when nearly 3 million bitcoins were held. Over the past 1,075 days, customers have removed 855,621 bitcoins from centralized trading platforms.
How does the withdrawal of bitcoins from exchanges impact their price?
When fewer bitcoins are available for purchase on exchanges, the principles of supply and demand suggest that if demand remains steady or increases, the price should rise. The perception of BTC becoming a scarce resource tends to drive up the price through supply squeezes.
Where are the remaining bitcoins not held by exchanges stored?
The remaining circulating supply of BTC not held by exchanges is managed by market makers, third-party custodians, layer two (L2) solutions like Lightning Network, and individuals using self-custodial wallets in hot or cold wallet settings.
Are there any trends regarding storing funds on exchanges?
Recent trends show a shift towards alternatives like self-custodial wallets and decentralized finance (DeFi) solutions, as storing funds on exchanges has become less favored.
5 comments
I’ve always preferred self-custodial wallets over exchanges. Can’t trust anyone with my precious BTC! It’s great to see more people embracing alternatives and taking control of their own assets. Stay safe out there, fellow hodlers!
wow! Over 855,000 BTC withdrawn from exchanges since July 2020? That’s mind-blowing! BTC becoming scarcer could lead to price increases. Exciting times ahead!
This data highlights the importance of supply and demand in the crypto market. With fewer bitcoins available on exchanges, the price could shoot up. Time to buckle up and ride the BTC roller coaster!
I’m still trying to wrap my head around all these numbers. So many bitcoins being withdrawn and stored in various ways. This whole crypto world is fascinating and a bit overwhelming at times!
so, the number of bitcoins on exchanges has gone down since last year? I guess more people are hodling or moving their BTC to safer wallets. Good move, folks!