The share of Bitcoin held on Binance has dropped to its lowest level in three years: what does this mean for the market?
The analytics firm CryptoQuant, which specializes in cryptocurrencies, shared an important assessment of the Bitcoin market. According to the company’s latest analysis, the supply of Bitcoin on Binance has fallen to its lowest level in three years, indicating a significant shift in market dynamics.
The analysis showed that the 365-day simple moving average (SMA 365) of the Bitcoin supply ratio on the Binance exchange dropped to 0.03246, reaching its lowest level since early 2023. This downward trend, ongoing since mid-2023, indicates that investors are withdrawing Bitcoin from exchanges and transferring it to cold wallets or private accounts.
According to analysts, this suggests a weakening of the selling trend among market participants and a strengthening of the long-term holding (HODL) strategy. The reduction of supply on exchanges decreases the amount of liquid Bitcoin available for trading, thereby limiting potential selling pressure.
From an on-chain data perspective, this development is interpreted as a positive signal. A decrease in the amount of Bitcoin held on exchanges may lead to faster price reactions in the event of increased demand. According to CryptoQuant, this is a factor that could support price growth in the medium and long term.
See also: "Kalshi and Polymarket launch crypto futures trading"
Українська
Русский
English

