Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
CryptoQuant, a prominent crypto monitoring resource, recently reported a decline in Bitcoin (BTC) reserves at cryptocurrency exchange giant Binance.
Data from the service revealed that Binance’s cryptocurrency reserves have dropped by 3,000 BTC in the past 24 hours alone. This drop follows the exchange’s “no-fee” trading incentive offers in December 2020, and suggests a shift from retail traders’ activity on Binance to Coinbase.
At press time, Binance’s BTC reserves have declined to 10,073 BTC, its lowest level since August 2018. In comparison, Coinbase’s BTC reserves have spiked past the 15,000 BTC mark, indicating a rapid influx of retail traders.
In a tweet, CryptoQuant CEO Ki Yong Ju said that the retail flow from Binance to Coinbase is likely due to the free trading offers on the Binance platform. He added that the exchange’s aggressive incentive offers to attract new traders have had the unintended consequence of causing “fatigue” in some of their users.
The surge in Coinbase’s BTC reserves, which has been mirrored by a surge in their ETH reserves, may also be attributable to the institutional demand for the crypto asset. Retail traders, many of whom are entering the crypto markets for the first time, are also believed to be contributing to this demand.
CryptoQuant’s data suggests that the flow from Binance to Coinbase is unlikely to subside in the near future. This shift could have lasting repercussions for the crypto markets, and highlights the importance of institutional activity in driving retail investor demand.