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Crypto investors are less willing to deal with cryptocurrency trading platforms, resulting in a decrease in exchange reserves of Bitcoin and Ethereum. Centralized exchanges on Bitcoin and Ethereum hit historic lows after investors and crypto enthusiasts opted for self-custody solutions for their virtual assets.
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Stay away from cryptocurrency trading
A recent trend has shown that traders and other enthusiasts prefer to hold on to their crypto assets rather than sell them. Bitcoin and Ethereum Exchange platform.
They preferred direct ownership of their assets using self-custody wallets, creating a growing demand for self-custody solutions. However, this led to a decline in the liquidity of BTC and ETH on centralized exchanges.
Strengthening Bitcoin and Ethereum Values
One positive result of traders’ preference for self-custody solutions is the increasing value of Bitcoin and Ethereum assets over time. Traders moving away from cryptocurrency trading platforms creates a feeling of scarcity, leading to an increase in its value.
At the time of writing, bitcoin price Estimated at $64,842. Since reaching a record high of $73,000 in March this year, the price has remained between $66,000 and $49,000. Meanwhile, according to CoinMarketCap, Ethereum Trading at $2,464.
Bitcoin, Ethereum reserves decline
Bitcoin and Ethereum declined on centralized reserves and hit historic lows earlier this month. Till October 13, cryptoquant chart It turned out that centralized exchanges for BTC recorded an all-time low of 2,666,717 Bitcoins.
The highest amount of Bitcoin valued at 3,361,854 was recorded on June 8, 2022. After that period, Bitcoin experienced a massive decline. It reached its lowest level earlier this month.
In terms of volume, spot exchanges hold 1.1 million Bitcoin reserves, while derivatives exchanges hold 1.39 million reserves. As of now, Binance has 563,000 Bitcoin reserves, making it the largest crypto 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’s centralized exchanges face a similar dilemma as Bitcoin, where its reserves have been steadily declining and have reached a record low of 18.7 million.
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According to CryptoQuant, derivative exchange Hold a large portion of Ethereum with 10.3 million reserves, while 8.4 million Ethereum reserves are being held in spot exchanges.
Historically, Ethereum’s all-time high reserves were recorded at 2,310,823 on September 6, 2022. Since that period, Ethereum reserves on central exchanges have continued to decline.
In terms of reserves, Coinbase has the largest reserves at 4.5 million Ethereum, followed by Binance with 3.6 million Ethereum. Kraken also has significant Ethereum reserves of 1.3 million.
Featured image from Pexels, chart from TradingView
