Exchange supply metrics track the portion of circulating Bitcoin held in wallets associated with centralized exchanges. Currently, approximately 1.15 million BTC is held on exchanges, representing just 5.74% of the total supply. In comparison, past market cycles show that before similar declines, exchange balances had exceeded 3 million BTC. This highlights the potential for a supply shock.

Liquidity Shrinks, Price Movements Intensify

As exchange balances drop, the number of coins immediately available in the market decreases. Actually, when coins move to private wallets or cold storage, supply tightens and price movements can become sharper. Order book depth diminishes; even relatively small buy or sell orders can move the market more aggressively.

Cryptoquant data shows that exchange reserves decreased from over 3.2 million BTC in 2024 to around 2.73 million BTC by March 2026. The market price is roughly $70,500, providing a clear comparison between supply and market value over multiple cycles.

Key exchange balances and percentages:

• Total BTC: ~21 million

• BTC on exchanges: ~1.15 million

• Exchange-held percentage: 5.74%

• Early 2024 exchange reserves: 3.2 million BTC

• March 2026 exchange reserves: 2.73 million BTC

Scarcity Dynamics and Long-Term Holding Trend

So, the drop in exchange reserves shows the long-term holding trend accelerating. Liquidity is decreasing, and the market is more sensitive. Even though over 20 million coins have been mined, the fact that less than 5% remain on exchanges strengthens scarcity dynamics. Supply tightens, and if demand rises, price impact grows larger.

Question: Why are Bitcoin exchange balances dropping and how does it affect prices?
Answer: As exchange reserves fall, fewer coins are immediately sellable. This makes price movements sharper during demand surges. Long-term holding strengthens, and scarcity increasingly impacts Bitcoin’s valuation.

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XRP Reserves Drop on Binance and Other Major Exchanges

At the beginning of October, Binance held 3 billion XRP, which has now dropped to 2.7 billion. Similarly, other major exchanges such as Bybit, Gate, HTX, and OKX also reported declines in XRP reserves.

• Lower exchange reserves suggest reduced selling pressure.

• Investors are moving XRP off exchanges for long-term storage.

• This trend generally signals a bullish outlook for the altcoin.

As a result, despite a volatile October, investors appear to be positioning themselves ahead of a historically strong November. Historically, Ripple has gained around 88% on average during November.

Historical Data and Seasonal Trends

CryptoRank data shows that over the past 12 years, XRP ended October lower seven times. This year, the altcoin has dropped approximately 7.13% so far. However, the decrease in exchange reserves may indicate a potential seasonal recovery.

BeInCrypto Markets reported Ripple trading at $2.65 at the time of writing, with a 24-hour decline of 0.0289%. On the other hand, major investors have increased positions, adding around $314 million worth of XRP. This institutional interest reinforces the positive outlook.

Technical Analysis and Long-Term Perspective

Analysts suggest XRP could be approaching a significant price increase after an extended sideways trend. The period between the 2017 and 2021 peaks is seen as a years-long accumulation phase. Moreover, investors seem to be taking early positions to offset October losses.

• XRP trades with strong November expectations despite large withdrawals.

• Institutional purchases and on-chain data support long-term bullish signals.

• Technical indicators point to a potential price recovery.

These developments highlight a key opportunity for investors and crypto market participants. Decreasing exchange reserves combined with historically strong November performance suggest Ripple may have a strong upside potential in the coming weeks.

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The post 300 Million XRP Withdrawn from Binance – Price Rally Expected appeared first on Coin Engineer.

Ethena (ENA) Rises Amid Buyback Program

Ethena (ENA) price surged 30% in August while exchange reserves dropped by 150 million ENA. This decline coincided with Ethena Foundation’s $260 million buyback program, which purchases around 5 million ENA daily. 

Ethena’s revenue exceeded $500 million, and the USDe supply reached a record level. These developments strengthen investor confidence, making long-term holding more attractive. 

BIO Protocol and Demand Driven by Staking

BIO Protocol, a prominent project in the DeSci sector, rose 265% in August. During this period, exchange reserves fell from 380 million BIO to 294 million BIO, a significant 22% drop. In the third week, investors withdrew 42 million BIO in just one week. 

BIO’s staking program accumulated 25 million tokens, and Arthur Hayes’ $1 million investment drew attention to the project. Additionally, the BioXP reward system encourages users to promote the project on social media, further boosting interest and accumulation. 

API3 and Momentum in the Oracle Sector

API3 rose 130% in August, and exchange reserves fell to their lowest level of the year. In the third week, 9 million API3 tokens were withdrawn, bringing reserves down to 17.19 million. The Upbit listing contributed to this surge. 

The oracle sector in general attracted investor focus. Chainlink’s (LINK) rally highlighted similar projects. According to Artemis data, August was the best-performing period for oracle projects. API3 accumulation helped stabilize the price above $1.50. 

These three altcoins demonstrated a selective altcoin rally in August. Buyback programs, staking incentives, and listings were key factors driving investor interest. In summary, ENA, BIO, and API3 showed strong accumulation signals alongside declining exchange reserves. 

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The post Which Altcoins Are Accumulating on Exchanges This Month? appeared first on Coin Engineer.