The quantity of Bitcoin sitting on exchanges was on a downward trend for both Coinbase and Binance from January 2022, until Binance’s exchange balance abruptly reversed and began to increase in May, as reported by Cryptoslate.

 It is still rising, despite the fact that both the total and Coinbase exchange balances are declining. Since February, the green line depicting the cumulative exchange balance has been on a severe downward trend. There were around 2,6 million Bitcoins on exchanges at the start of the year. This figure is now less than 2,4 million, indicating a net outflow of 200,000 Bitcoins.

This suggests that the supply of Bitcoin has been removed from exchanges, indicating a long-term positive holding tendency. Coinbase’s overall balance has followed the same pattern. The exchange had approximately 690,000 Bitcoins at the start of the year, but it had dropped below 560,000 in eight months.

Since the beginning of the year, Coinbase has seen a significant quantity of Bitcoin withdrawn. 

Furthermore, the amounts taken out more than doubled twice between March and May, and again in July. The fact that US institutions prefer Coinbase may have influenced these transactions. In a down market, institutions are more likely to buy and keep, which may have prompted them to withdraw their Bitcoins from Coinbase, Cryptoslate noted.

Coinbase, on the other hand, has been dealing with the bankruptcy language in its quarterly report since just before the winter season began. Soon after, Coinbase users reported that they had lost their Wormhole Lunas while attempting to transmit them to the exchange, which Coinbase refused to assist with at the time. The exchange was then sued by its customers as well as Craig Wright. In addition to dealing with them, the SEC has opened an investigation into Coinbase’s staking product.

Meanwhile, due to market conditions, the exchange unhired fresh candidates and lay off 1,100 staff following a petition against executives. Finally, according to Goldman Sachs, Coinbase’s income could drop by 61% owing to the cold weather, and the company may need to lay off additional employees to stay afloat.

(With insights from Cryptoslate)

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