This post was originally published on Coinspeaker
Key NotesA primary driver is the shift towards self-custody, with long-term investors and whales moving Bitcoin to cold wallets.Increased demand for spot Bitcoin ETFs in the US from institutions is moving BTC off exchanges to external custodians.Enhanced compliance measures by Binance are also causing users to reallocate assets.
Bitcoin reserves held at Binance have fallen sharply in recent months: from roughly $71 billion at the peak to about $51 billion. However, on-chain researchers argue the move reflects structural accumulation and custody shifts rather than an exodus of confidence.
CryptoQuant trackers and exchange-balance roundups attribute the decline to coins leaving trading wallets for longer-term storage, a pattern that has historically aligned with constructive market phases.
Why Binance’s Bitcoin Reserves Are Declining
“Historically, such conditions have supported medium- to long-term price appreciation. The current trend suggests that Binance’s reserve decline is a normal re-accumulation phase.” – By @xwinfinance pic.twitter.com/g3TCG4o6GD
— CryptoQuant.com (@cryptoquant_com) December 3, 2025
Why Are Balances Falling?
Part of the drawdown is mechanical. As U.S. spot Bitcoin ETFs gather assets, acquired BTC $91 886 24h volatility: 4.6% Market cap: $1.84 T Vol. 24h: $88.55 B
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