- Binance leads Coinbase (NASDAQ:COIN) with the most BTC reserves for the first time.
- Binance’s ultimate rise in the bear market could affect bitcoin.
- Binances increased exchange reserves imply that its CEO Zhao will play a vital role in the market.
Data from the prominent analytics site CryptoQuant recently revealed that Binance has overtaken Coinbase as the exchange with the most Bitcoin (BTC) reserves for the first time.
After the catastrophe following the recent FTX travesty, the market crashed, where most exchanges’ reserves significantly drowned in the dip. During the bloodbath, Binance surpassed Coinbase Pro, a leading crypto exchange platform, to reach the top rank in terms of Bitcoin reserves on the exchange for the first time.
For the first time, Binance takes the lead in the number of #Bitcoin reserves on the exchange."Binance has surpassed Coinbase Pro in terms of Bitcoin reserves on the exchange, marking absolute strength during this bloody period."by @binhdangg1 Linkhttps://t.co/PG0zvLfcGn— CryptoQuant.com (@cryptoquant_com) November 21, 2022
Although investors are skeptical about centralized exchanges, Binance remains at the top of the list. In a surprising turn of events, Binance increased its Bitcoin reserves due to the market crash, surpassing Coinbase in its reserves.
Until recently, Coinbase Pro was the undisputed leader in Bitcoin reserves. Binance was able to push Coinbase down a notch as a result of the recent market downturn.
While this move demonstrated Binance’s ultimate strength during this bear market phase, the price of bitcoin could be affected by it.
As the market was troubled by a defeatist mentality, other exchanges’ reserves also declined. Binance, on the other hand, has surged Coinbase Pro to grab the lead in terms of Bitcoin reserves, with 584,083 BTC. Coinbase came in second with 533,048 Bitcoins, while Bitfinex, Gemini, and Kraken came in third, fourth, and fifth, respectively.
Binance increasing its exchange reserves would imply that Binance CEO Changpeng Zhao might play an important role in market momentum. However, if Zhao makes any blunders or takes a wrong step, the market as a whole may suffer.
An interesting tendency to observe is that as Binance exchange reserves increased, BTC SOPR dropped. On November 13, the Spent Output Profit Ratio (SOPR), which evaluates profit and loss ratios based on the difference between the coin’s purchasing and selling values, fell to 0.87.
Subsequently, the Binance exchange received 140,000 BTC on the same day. This increased Binance exchange’s BTC reserves to 586,488, a new all-time high.
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