For the first time since 2018 Bitcoin balances on exchanges fell below 2.5M

Bitcoin's balance on three popular exchanges decreased by 390k BTC over the past 9 months.

On October 20, 2020, the amount of Bitcoin held at major exchanges fell below 2.5 million BTC for the first time in two years.

He also noted that the community is resorting more to self-custody solutions, including platforms like Nexo, where they can "Tax-efficiently borrow against their assets rather than selling them." Cointelegraph noted yesterday that the Bitcoin supply is currently diffused more than ever.

"As long as exchanges refuse to give their clients more they will leave them and come to Celsius. We just crossed $2.7B in deposits since launch two years ago. We would not be growing so fast unless we did more to our customers than exchanges."

From the chart above, we can see that this swing has not impacted all exchanges equally.

While balances at BitMEX and Bitfinex were decimated, decreasing by more than half, Binance has continued to accumulate additional funds.

The amount of Bitcoin locked on Ethereum through wBTC and renBTC presently exceeds 130,000.

Aside from the continuous growth of Grayscale's Bitcoin Trust Fund, publicly-traded companies like MicroStrategy and Square began adding crypto assets to their treasuries.

It seems that there is either a general trend towards users withdrawing Bitcoin from custodial exchanges, or perhaps a few major exchanges are simply losing the trust of their customers.

The latter may be a reasonable conclusion, as a mere three platforms were responsible for the bulk of the trend - their balances decreased by 390,000 BTC, making them accountable for almost 80% of the total decline.