Bitcoin and Ethereum reserves on centralized exchanges have fallen to record lows, reflecting a growing preference for non-custodial solutions among cryptocurrency holders.

Decline in Bitcoin Exchange Reserves

According to CryptoQuant, Bitcoin reserves on centralized exchanges fell to 2,666,717 BTC as of October 13th. The reserves peaked at 3,361,854 BTC on June 8, 2022, with a continuous decline since then. Currently, spot exchanges hold 1.1 million BTC and derivatives 1.39 million. Binance holds 563,000 BTC, Kraken 112,300 BTC, and Coinbase Advanced has 830,530 BTC in reserves.

Ethereum Reserves Decrease

Ethereum reserves on centralized exchanges also reached an all-time low of 18.7 million ETH. Spot exchanges hold 8.4 million ETH, and derivatives 10.3 million ETH. Binance stores 3.6 million ETH in reserves, Coinbase 4.5 million ETH, while Kraken holds 1.3 million ETH.

Trends Among BTC and ETH Investors

The decline in BTC and ETH reserves indicates a preference among investors for self-custody. This results in reduced liquidity of the assets on exchanges and a sense of scarcity, potentially boosting their value. BTC currently trades around $63,911, and Ethereum is priced at $2,464.

The decline in BTC and ETH reserves on exchanges shows a shift in investor preferences toward self-custody, which may affect their liquidity and value.