Since yesterday, Coinbase’s reserves have risen by nearly 12,000 BTC, while Binance’s have reduced by 5,000 BTC, the research firm wrote in a recent note
Bitcoin is flowing from Binance to Coinbase, according to on-chain data compiled by CryptoQuant.
Since yesterday, Coinbase’s reserves have risen by nearly 12,000 BTC, while Binance’s have reduced by 5,000 BTC, the research firm wrote in a recent note.
The decline in Bitcoin reserves on Binance seems to be due to retail outflows, Bradley Park, a Web 3 analyst at CryptoQuant stated to CoinDesk in a note.
The market is still nervous about the recent legal implications against Binance, Greta Yuan, head of research at 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, Yuan added.
Some analysts say that Binance’s recent settlement with the U.S. Department of Justice (DoJ) was the last barrier to getting approval for a spot bitcoin exchange-traded fund, and that is also impacting fund flows.
With this plea deal, the expectations for a spot Bitcoin exchange-traded fund might have increased to 100% as the industry will be compelled to abide by the rules that TradFi firms must follow, crypto services provider Matrixport stated.
CryptoQuant identified a 1,000 BTC withdrawal from Coinbase, and Park proposed the transaction was an “institutional over-the-counter (OTC) trade and can be seen as anticipation of approval of ETFs.”
According to CryptoQuant data, exchange reserves of bitcoin have been steadily declining throughout the year, which is regarded to be a bullish sign. Nevertheless, some analysts say that since last year’s failure of FTX, trust in centralized exchanges has reduced and investors are keeping their holdings elsewhere.
