Coinbase’s Bitcoin reserves have been steadily decreasing over the past few months, according to data from CryptoQuant, a popular on-chain analytics company. The decline in BTC reserves on the exchange started on February 18th of this year and has continued since then. The platform shared this information on its official account, highlighting the downward trend in Bitcoin reserves.
On February 18, 2024, Coinbase had a total of 1,044,997 $BTC in reserves. However, due to increased demand driven by Spot ETFs, the reserves dropped to 878K, as reported by @burak_kesmeci. The surge in demand for spot exchange-traded funds played a significant role in influencing the decline in Bitcoin reserves on Coinbase.
Following this, in March, the exchange saw its BTC holdings hit a nine-year low, with a substantial outflow contributing to the drop in reserves. By March 31st, there was a further significant decrease in Bitcoin reserves on the platform. In May, on-chain data revealed that the BTC reserves had fallen even further to approximately 267K, a significant decrease from the initial 418K reported earlier. As of June 1st, Coinbase’s BTC holdings stood at 888,337 BTC.
Analysts are now speculating that potential cuts in interest rates in September could have an impact on Coinbase’s Bitcoin reserves. Despite starting with 928,743 BTC on April 1, the exchange has seen a steady decline in reserves, with a total decrease of 40,406 BTC. The downward trend in reserves suggests that there may be more changes to come in the future.