The balance on the exchange refers to the amount Bitcoin on the floors. Since January 2022, this indicator has been trending down for both Coinbase and Binance. However, the balance on the exchange Binance suddenly changed and started to spike in May so far, while both the overall transaction balance and Coinbase continue to head south.
Specifically, the total balance on the exchange (green line) has fallen sharply since February. At the beginning of the year, there were more than 2.6 million Bitcoin on the floors. This figure is now under 2.4 million, showing a net outflow of 200,000 Bitcoin.
In other words, 200,000 Bitcoins have been removed from exchanges, indicating a long-term bullish trend.
Coinbase follows the same trend as the total balance. The exchange held nearly 690,000 Bitcoin at the start of the year and fell below 560,000 after 8 months.
The chart shows the movement of coins on Coinbase. The red lines represent the amount of Bitcoin leaving the exchange, while the blue lines represent the incoming balance. Thus, there is a considerable amount BTC has been withdrawn from Coinbase since the beginning of the year. Furthermore, the outflow doubles once between March-May and another time in July.
Perhaps the US institutions that favored Coinbase contributed to these transactions. In the face of a bear market, institutions often buy and hold, which may have prompted them to pull Bitcoin out of Coinbase.
Despite being stuck in the same downtrend at the start of the year, Binance is ultimately still holding more Bitcoin than it did in January. The exchange started the year with 586,000 Bitcoins, dropped below 560,000 through May and ended the year. ended at 623,000 Bitcoin in August.
The chart above reflects Bitcoin's dwindling reserves from February to May, then changing completely.
Coinbase and Binance in a Bear Market
Judging by the news over the past few months, Binance and Coinbase are dealing with winter cryptocurrency in different ways. While Binance is undeterred in extreme conditions and continues to put customers first, Coinbase resolved by layoffs, lawsuits and speculation of bankruptcy.
Before the coldest winter in history cryptocurrency started, Binance US was valued at $4.5 billion in seed funding and the exchange took its first step to expand in Abu Dhabi. Binance continues to invest and recruit even after winter crypto begin. CEO Changpeng Zhao even said that the company is very prosperous and will soon start acquiring other companies.
Coinbase, on the other hand, mentioned bankruptcy in its quarterly report just before winter began. Soon after, Coinbase users lost Wormhole Lunas trying to submit to the exchange, and Coinbase refused to help at the time. Next, the exchange was attacked by several customers and Craig Wright, who claimed to be Satoshi Nakamoto Sue. In addition, Coinbase's staking product was also approved by the United States Securities and Exchange Commission (SEC).SEC) investigate.
Meanwhile, the exchange did not hire new people due to market conditions and laid off 1,100 employees after a lawsuit filed against the operators. Ultimately, according to Goldman Sachs, Coinbase's revenue could drop by 61% due to winter conditions and the company needs to lay off more workers to survive.