With the 32nd reserve proof report, Binance unveiled the asset composition of the exchange and the direction of investor capital immigration. As of July 1, Binance’s reserves were 573,997 BTC, down 3.27% from 593,412 BTC in June. This decline in 19,400 BTC highlights a continuing withdrawal, which may be linked to a more general accumulation trend that will earn profits.
To put things in perspective, Binance’s Bitcoin Holdings amounts to around 2% of the total available supply. Ethereum is probably more noteworthy. In a month, Binance’s ETH reserve fell by 285,000 (5.34%) to 5.05 million ETH.
Binance’s custody is the amount that leaves Binance custody in a short period of time, despite representing only 0.2% of Ethereum’s total supply. This pattern closely corresponds to the price performance improvements of Ethereum, as shown in the accompanying charts where ETH continues to rise towards $2,700. The decline in exchange balances and rising prices are divergent and showing a long-term accumulation trend as investors transfer their holdings to altcoins.
Ethereum prices have historically experienced upward volatility before long outflows from centralized exchanges. This is a situation that traders should know. In contrast to Ethereum and Bitcoin’s departure, Binance’s USDT holdings increased by more than $760 million (2.64% or more).
This increase in Stablecoin reserves shows investors are parking new funds in the tethers and simultaneously removing coins from the market. A slight decrease of 0.54% was seen in BNB reserves, which was negligible compared to BTC and ETH movements.
With all things in mind, the picture of reserves presents a compelling story. Ethereum is rapidly withdrawing from the ceremony. This coincides with strong price actions on assets, suggesting the possibility of supply squeezing if momentum continues. Instead of panic sales, a steady decline in Bitcoin also suggests a long-term accumulation.
As the situation continues to be shaped by reduced liquidity, investors should be aware of the additional reduction in exchange balances as well as breakouts that could exceed current levels of resistance.