Bitcoin Accumulation Leads by Binance, Bitfinex, with Coinbase Following
The undisputed leader among crypto assets is Bitcoin [BTC], which has captured the attention of investors, traders, and enthusiasts all around the world. BTC's demand has increased as it has evolved from being related to the dark web to being seen as a possible substitute for the US dollar. As a result, Bitcoin investments on multiple exchanges have significantly increased. According to a new research by Glassnode, the quantity of Bitcoin held on the three major exchanges has been gradually growing over the last three years.
But which exchange contains the most Bitcoins?
Glassnode stats show that Binance is now clearly in the lead when it comes to accumulating Bitcoin. Over the last three years, there has been a significant increase of 421,000 BTC on the market. The overall Bitcoin balance on Binance has increased dramatically, reaching 703,000 BTC. Following closely following, Bitfinex increased its BTC balance by 250,000 BTC, securing the second spot in terms of accumulation. As a result, Bitfinex currently has 320,000 BTC in reserves, which is a considerable sum.
As can be seen in the figure above, Coinbase has suffered a substantial setback in terms of accumulating Bitcoin. Over the previous three years, the exchange's BTC balance has significantly decreased by 558,000 BTC. Despite this setback, Coinbase still has a 462,000 BTC balance overall. Compared to Bitfinex's BTC balance, this is a lot higher.
Why is the BTC balance on Coinbase trending downward?
Exchanges for cryptocurrencies have seen a noticeable rise in outflows in recent years. In some ways, this might be seen as an optimistic indication, but it's crucial to remember that the decline of several crypto exchanges also had an impact on these outflows. It is important to note, though, that the observed change in outflows seems to be tied to demography.
A huge adjustment in Bitcoin supply that has been highlighted by Glassnode has important ramifications for the cryptocurrency market. This change in ownership patterns has particularly significant effects on how American companies and Asian merchants will behave.
According to the data, there has been a notable decrease in U.S. corporations' ownership of Bitcoin by about 11% since June 2022. This dramatic decline in Bitcoin ownership represents a considerable departure from the patterns seen during the previous bull cycle, which lasted between 2020 and 2021.
On the other hand, traders who were active during Asian trading hours saw a notable boost in their Bitcoin holdings, with a spectacular gain of 9.9%.
In the U.S., Coinbase primarily serves and does business. The abrupt decline in the exchange's Bitcoin balance could be caused by a lack of regulatory certainty. The popularity of Binance and Bitfinex has increased since they operate outside of the United States.