Exchange Reserves Aren’t Collapsing The Market Is Just Evolving
The narrative that exchange reserves are in free fall is misleading if you zoom out. At their peak, exchanges held an estimated ~3.46M $BTC
Today, they still hold around ~3.27M BTC only ~5% below the all-time high. That’s far from a true “exchange shortage,” despite what daily headlines suggest.
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Yes, reserves have been gradually declining this cycle, but this reflects a structural shift, not sudden scarcity.
What’s really happening:
Spot Bitcoin ETFs now require dedicated reserves
Treasury-driven companies are accumulating BTC off-exchange
DeFi expansion allows BTC derivatives to be used as collateral
Post-FTX mindset shift → self-custody over exchange trust
Stricter regulations & taxation, especially in Europe, push users away from custodial platforms
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“Not your keys, not your Bitcoin” has moved from a slogan to a behavior.
Bottom line: Exchange reserves aren’t collapsing.
They’re being redistributed across a broader, more complex Bitcoin ecosystem than ever before.
#TrumpTariffs #BinanceAlphaAlert #BinanceBlockchainWeek
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