• Bitcoin’s exchange flow and reserves have fallen over the last few months
• A move towards $100k remains very likely for world’s largest cryptocurrency

Bitcoin reserves across centralized exchanges (CEXs) have shown notable differences this year. While some exchanges like Binance have maintained relatively stable reserves, others like Coinbase have seen major declines.

These trends have been accompanied by a significant drop in exchange-to-exchange Bitcoin flows. This can be interpreted as a sign of a maturing market and greater confidence among investors. 

Bitcoin exchange flows and market sentiment

The exchange-to-exchange flow metric, which tracks Bitcoin transfers between exchanges, dropped to unprecedented lows, according to CryptoQuant. Historically, spikes in these flows have coincided with periods of market turmoil, as traders moved BTC to Binance during major price declines.

However, diminished flows could also allude to reduced panic-driven behavior – A sign of a more stable and confident market environment.

At the same time, Bitcoin’s exchange reserves, particularly across all centralized exchanges, declined sharply over the past two years.

From over 3.3 million BTC in early 2022 to just 2.5 million BTC in late 2024, this drop underlined a broader trend of self-custody adoption and reduced reliance on exchanges for storage. The accompanying chart illustrated this steady decline, cor

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Author: Adewale Olarinde