- Bitcoin exchange balances drop 12.8% in 2024, signaling decreasing liquidity.
- Coinbase and Binance see significant BTC withdrawals, while OKX sees gains.
- Rising Bitcoin price aligns with high Fear & Greed Index, suggesting market volatility.
Bitcoin exchange balances are at their lowest point since early 2023. This shows a trend of decreasing liquidity across crypto exchanges.
Bitcoin exchange balances have been falling throughout 2024. The total BTC is now 2.3 million, a decrease of 116,000 BTC in one month. Since the beginning of the year, exchange balances are down 315,775 BTC, around 12.8%.
Exchange Balances Decline
Among the largest exchanges, Coinbase has 783,104 BTC, but this is down 38,311 BTC over the last 30 days and 281,840 BTC since January 1, 2024. Binance has 578,991 BTC, down 29,369 BTC over the past month.
Source: X
Other exchanges like Bitmex and OKX have experienced mixed trends, with OKX seeing an increase of 33,834 BTC since the start of the year, signaling different trading behaviors across platforms.
Read also: Crypto Fear & Greed Index Hits ‘Greed’ Zone as Market Sentiment Improves
Historically, when exchange balances fall, this means bullish market sentiment. This means lower selling pressure. This trend is in line with the rise in Bitcoin’s price, which is above $95,000.
Bitcoin’s Price and Sentiment
The rise in Bitcoin’s price has come with high levels of investor sentiment, shown by the Fear & Greed Index. Bitcoin’s price often goes up during heightened greed, as it did in 2020 and 2021. The index is currently at high levels of greed, which is in line with Bitcoin’s bullish price trend.
Source: Glassnode
These changes show the role of investor sentiment in making price volatility. As Bitcoin’s exchange balances fall and the price trend goes up, the market could be more volatile.
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