Binance's Bitcoin Reserves Hit Two-Year High Amid Market Volatility

Binance's Bitcoin reserves have reached a two-year high, holding around 693,000 BTC worth roughly $53 billion, which accounts for about 30% of all exchange-held Bitcoin.

Santiment found that exchange reserves barely moved between May and September, despite a 40% price swing in Bitcoin. This challenges the assumption that rising exchange balances signal investors are preparing to sell.

The increase in Binance's reserves can be attributed to several factors, including SAFU's insurance fund purchases of around 15,000 BTC as part of its $1 billion allocation and users transferring coins from self-custody devices to exchange wallets for security following the ColdCard hardware wallet incident.

Santiment's data shows that while Bitcoin's price moved sharply over the summer, exchange-held supply remained relatively stable within a 4% range. This suggests that exchange balances may not be a reliable indicator of market trends.