Binance has recently liquidated a substantial part of its Bitcoin reserves, affecting the company's overall crypto holdings and sparking discussions among market participants.
Bitcoin Reserves Liquidation
Starting January, Binance held 46,896 BTC but reduced its reserves to 2,747 BTC by the end of the month, a reduction of over 94%. The exchange also converted parts of its ETH and SOL reserves into USDC while retaining most of its BNB.
Updated Proof of Reserves
Following recent changes and wallet reorganization, Binance revealed new proof of reserves data showing a 100.45% liquidity level for BTC reserves. Notably, the exchange previously had an excess margin of 108%.
Impact on Market Sentiment
The reduction in reserves led to speculation that Binance is selling assets at the market peak. In January, the exchange liquidated an estimated $8 billion from its assets, which might have contributed to market weakness, especially for Ethereum.
Binance's actions have sparked active discussions among market participants, highlighting the importance of transparency and the influence of major exchanges on market dynamics.
