Crypto investors are not interested in dealing with cryptocurrency trading platforms, which has resulted in Bitcoin and Ethereum exchange reserves decreasing. Bitcoin and Ethereum centralized exchanges hit an all-time low after investors and cryptocurrency enthusiasts turned to self-custody solutions for their virtual assets.
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Staying away from cryptocurrency trading
A recent trend has shown that traders and other enthusiasts choose to hold their crypto assets instead of selling them. Bitcoin and Ethereum exchange platforms.
They preferred direct ownership of their assets using self-custody wallets, which created a growing demand for self-custody solutions. However, it has led to a decline in BTC and ETH liquidity on centralized exchanges.
Strengthening Bitcoin and Ethereum Values
A positive consequence of traders’ preference for self-custody solutions is the increase in the value of Bitcoin and Ethereum assets over time. Traders who move away from cryptocurrency trading platforms create a sense of scarcity, leading to growth in their value.
At the time of writing, the Bitcoin price is listed at $64,842. Since reaching a record high of $73,000 in March this year, the price has remained somewhere between $66,000 and $49,000. Meanwhile, according to Coinmarketcap, Ethereum it is trading at $2,464.
Bitcoin and Ethereum reserves fall
Bitcoin and Ethereum in centralized reserves have plummeted and hit an all-time low earlier this month. On October 13th, CryptoQuant Chart showed that centralized BTC exchanges recorded an all-time low of 2,666,717 bitcoins.
The highest amount of Bitcoin was set at 3,361,854, recorded on June 8, 2022. After this period, Bitcoin went into a sharp decline. It reached its lowest level at the beginning of this month.
In terms of volume, spot exchanges have 1.1 million Bitcoins in reserves, while derivatives exchanges have 1.39 million reserves. By far, Binance has 563,000 Bitcoin reserves, the largest cryptocurrency exchange by trading volume, followed by Kraken with 112,3000 reserves.
On the other hand, Coinbase Advanced has 830,530 Bitcoin reserves and Coinbase Prime has 3,000 reserves. Ethereum centralized exchanges also face a similar dilemma to Bitcoin, where their reserves continue to plummet and hit a record low of 18.7 million.
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According to CryptoQuant, derivatives exchanges hold a large portion of Ethereum with 10.3 million in reserves, while 8.4 million Ethereum reserves are being held on spot exchanges.
Historically, the all-time high of Ethereum reserves was 2,310,823, recorded on September 6, 2022. Since this period, Ethereum reserves on central exchanges have continued to fall.
In terms of reserves, Coinbase has a large reserve of 4.5 million Ethereum, followed by Binance with 3.6 million Ethereum. Kraken also has a significant Ethereum reserve of 1.3 million.
Featured image from Pexels, chart from TradingView