Binance Reserves Weigh on Bitcoin as Institutional Demand Remains Strong

Bitcoin is struggling to regain momentum as it trades above $77,000 despite a sharp buildup of coins on Binance. The exchange's reserves have risen to over 693,000 BTC, their highest level in two years, and account for about 30% of bitcoin held across major trading platforms.

The increase in exchange balances can increase the amount of bitcoin readily available for sale, though it does not necessarily mean holders intend to sell. Binance's $1 billion SAFU fund purchase plan and demand for third-party custody may account for part of the increase.

Signs of longer-term institutional demand offer a more positive counterpoint. A poll conducted during a Bitwise presentation to 400 wealth managers found that 60% planned to allocate to crypto within the next year, while 73% of institutional investors surveyed by Coinbase and EY-Parthenon plan to increase crypto allocations in 2026.