Binance's Bitcoin Reserves Decline and Users Withdraw Billions Amidst CEO's Departure and Regulatory Scrutiny
On-chain data compiled by CryptoQuant reveals that Bitcoin is flowing from Binance to Coinbase, with Coinbase's reserves increasing by around 12,000 BTC while Binance's have decreased by 5,000 BTC. The decrease in Bitcoin reserves on Binance is attributed to retail outflows, possibly due to concerns over recent legal implications against the exchange. Analysts suggest that Binance's recent settlement with the U.S. Department of Justice may have increased expectations for the approval of a spot Bitcoin ETF, impacting fund flows. Trust in centralized exchanges has also diminished since the collapse of FTX last year, leading investors to keep their holdings elsewhere.