Bitcoin Jumps in Binance Reserves as USDT, ETH Decline

Binance Asset Reserves. Source: Wu Blockchain

The pattern suggests rebalancing rather than a broad withdrawal, with users migrating into Bitcoin during periods of uncertainty.

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Stablecoin Over-Reserves Hit Six-Month Highs

Analyst AB Kuai Dong highlighted a sharp rise in Binances stablecoin buffers:

• USDT over-reserve ratio: 109.16% (up from 101.52% in June)
• USDC over-reserve ratio: 137.7%
• Overall platform over-reserves: 12.32% above user funds
• BNB over-reserve ratio: 112.32%, highest among major assets

He added that rising over-reserves “enhance the platforms risk resistance capabilities,” especially for stablecoins. The Binance exchange reiterated that all user assets remain backed 1:1.

The consistent build-up, from June to December, signals stronger liquidity management. It also aligns with regulatory expectations that reserves remain fully available for redemptions rather than internal trading.

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Signals for Possible Future Moves？

CryptoQuant noted that Binances Bitcoin reserve ratio recently touched its lowest level since 2018. This condition has historically preceded powerful Bitcoin rallies due to reduced sell-side liquidity.

“History shows that hitting such lows often precedes powerful Bitcoin rallies, simply because the liquidity required to fuel a price surge is now fully available on the exchange,” wrote CryptoQuant analysts.

Yet, recent market data shows that Bitcoin is leaving exchanges globally, even as Binance balances rise. This suggests that Binance is gaining market share from competitors rather than reversing the broader trend toward self-custody.

The combination of rising Bitcoin accumulation, expanding stablecoin over-reserves, and historically low reserve ratios creates a mixed but potentially constructive setup.

If macro conditions stabilize, Binances strengthened liquidity and growing buffers position the exchange to support higher trading activity in a future rally phase.