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October 19, 2020
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Cryptocurrency reserves in top exchanges are going down. The reserves of this virtual currency are reportedly sinking to a new depth. This could be due to the considerable bitcoin reserve balance drop in some of the top exchanges. The trading platforms had much more bitcoin reserves holding a few months back. Onchain data reveals that a few exchanges have witnessed strange behavior from customers. They have regularly drained away bitcoins from exchange-owned cold wallets that amounts to as much as 187,000 bitcoins ($2.1B).
Performance of Coinbase & Huobi
Coinbase which had 1 million bitcoin under management in the last February is lowered by more than 9% due to a hefty amount of 92,000 bitcoin ($1B) that has left it in these months. 
The San Francisco trading platform has 908,560 BTC under its management as per the Bituniverse’s online exchange balance rank tracker findings.
News.Bitcoin.com’s reserves report was published at the end of June 2020. Since then Coinbase has loosed 3,000 BTC ($408M). In the last 3 months many high-rated exchanges, who ranks below Coinbase have also witnessed “tearing away” of their cold wallets.
Huobi is the second-largest trading platform as per the total bitcoin reserves it is holding. Since June 2020, the reserve saw a downfall as 53,000 BTC ($601M) has left it. Interestingly, Binance’s holding has not been affected so much. In these three months, its reserve has slid a little bit from 269,000 BTC to 266,000 BTC. Likewise, there is not much change in the reserve holding of Bitfinex. It is to be noted here that Bitfinex is the fourth largest BTC holder in the world.
Data shows that in the last 3 months, the top five crypto trading platforms have seen more than 187,000 BTC ($2.1B) cumulatively has moved away from their reserves.
Bitmex vs. U.S. governement
A few months back the crypto world saw the legal battle between the U.S. government and crypto platform 
Bitmex. Because of that, a large number of bitcoins have left the exchange. In the last three months, Bitmex’s bitcoin reserve is downed by a massive 49.55% in BTC reserves i.e. from 224,000 BTC to 113,0 00 BTC.
According to Glassnode’s “Exchange Balance vs. Bitcoin” report, the trading platforms are holding 2.7 million BTC today. The study shows that out of the 21 million BTC cap, the trading platforms hold 12.85% of all that will exist, and 14.59% of the 18.5 million BTC that is in circulation.
Top five cryptocurrency exchanges
The top five platforms in terms of BTC reserves are Coinbase, Huobi, Binance, Bitfinex, and Okex. These crypto trading giants hold as much as 1.8 million BTC out of a total of 2.7 million BTC.
In the last fifteen months, exchange balances have been nose-diving uninterruptedly. This type of lowly situation had happened in May 2019.
Change in holding by traders
According to several crypto experts and traders, this low balances phenomena on trading platforms is implying that instead of leaving funds with a third party; more traders are now storing assets in an un-protective way. The coming months are crucial to deciding upon the future growth of BTC.
