Coinbase’s Bitcoin reserves have been steadily decreasing over the past few months, according to CryptoQuant, a renowned on-chain analytics company. Since February 18th of this year, the exchange has been experiencing a decline in its BTC reserves. The platform officially acknowledged this shift in reserves through its X account.
On February 18, 2024, Coinbase had a total of 1,044,997 $BTC in reserves. However, due to a surge in demand caused by Spot ETFs, this number dropped to 878K. This information was shared by CryptoQuant analyst Burak Kesmeci in a recent tweet.
The rise in demand for spot exchange-traded funds significantly impacted Coinbase’s Bitcoin reserves. This led to a substantial decrease in reserves, with the exchange’s BTC holdings plummeting to 878K. This decline continued through March, reaching the lowest level in 9 years. By the end of March, reports indicated a significant drop in Bitcoin reserves.
In May, on-chain data revealed that Coinbase’s BTC reserves had further decreased, reaching approximately 267K from an initial 418K. As of June 1st, the exchange held 888,337 BTC in reserves.
Analysts suggest that potential cuts in interest rates in September may have an impact on Coinbase’s BTC reserves. Despite these fluctuations, the exchange continues to experience a gradual decline in its Bitcoin reserves.
