2% of All Bitcoin (BTC) and 0.2% of Ethereum (ETH)

With its 32nd Proof of Reserves report, Binance has revealed the asset composition of the exchange and the direction of investor capital migration. Binance’s reserves as of July 1 were 573,997 BTC, a 3.27% decrease from June’s 593,412 BTC. This decline of 19,400 BTC highlights ongoing withdrawals, which may be connected to profit-taking and more general accumulation tendencies.

To put things in perspective, Binance’s Bitcoin holdings amount to about 2% of the entire available supply, which is an enormous sum by any measure. Ethereum is perhaps more noteworthy. In a single month, Binance’s ETH reserves dropped by 285,000 ETH, or 5.34%, to 5.05 million ETH.

The amount leaving Binance’s custody in a brief period of time is a substantial portion, even though it represents only 0.2% of Ethereum’s total supply. This pattern closely corresponds with Ethereum’s improving price performance, as shown on the accompanying chart where ETH keeps rising toward the $2,700 mark. Declining exchange balances and rising prices diverge, indicating a long-term accumulation trend as investors shift their holdings to altcoins.

Ethereum’s price has historically experienced upward volatility before prolonged outflows from centralized exchanges, a situation that traders should be aware of. In contrast to the exodus of Ethereum and Bitcoin, USDT holdings on Binance increased by more than $760 million, or 2.64%, to almost 29.6 billion.

This increase in stablecoin reserves shows that investors are parking new funds in Tether while simultaneously removing coins from the market, perhaps in anticipation of a favorable volatility window or in preparation for reentry. BNB reserves saw a slight decline of 0.54%, which was negligible in comparison to the movement in BTC and ETH.

All things considered, the reserves picture presents a convincing story: Ethereum is rapidly exiting Binance, which is consistent with the asset’s strong price action and suggests a possible supply squeeze if momentum continues. Instead of panic selling, steady declines in Bitcoin also suggest longer-term accumulation.

As the situation continues to be shaped by decreased liquidity, investors should keep an eye out for additional drops in exchange balances as well as possible breakouts above current resistance levels.