Binances unrealized profit on its Bitcoin reserves has reached an all-time high of around 60,000 BTC.

The latest data revealed that Binances BTC reserves have been on a steady decline since September 2024, from approximately 631,000 BTC to 574,000 BTC, even as the crypto exchanges unrealized gains on these holdings continue to climb.

Bitcoin Reserves Down, Profits Up

The reserves, which are primarily used to support Binances operational liquidity and BNB Chain operations, have benefited from Bitcoins latest price rally. It has pushed up the value of its remaining holdings despite the overall decline in reserve volume.

Binance also holds about 16,000 BTC in custodial wallets to back its BTCB token, which ensures sufficient liquidity for tokenized Bitcoin on the BNB Chain.

Tracking Binances BTC reserves provides insight into long-term market sentiment, as declining reserves often indicate that investors are withdrawing Bitcoin from exchanges. CryptoQuant explained that this suggests stronger conviction among holders.

The simultaneous decrease in reserves and increase in unrealized profits highlights the impact of Bitcoins price appreciation on Binances balance sheet.

Crypto Exchanges See Volume Spike

Exchange activity across the market accelerated sharply as BTC surged to a new all-time high last week. CryptoQuant noted that the spot trading volumes on centralized platforms rebounded, while futures turnover and aggregate open interest climbed. This was indicative of an influx of fresh capital into derivatives markets amid the rally.

Binance, for one, recorded the largest single-day increase in spot trading volume both on the day before and the day after Bitcoin hit its new high. The exchange captured a 52% market share on July 18. Other platforms, including Crypto.com, Coinbase, Bybit, and OKX, also registered high spot trading activity during the period.

At the same time, Binance saw the highest growth in futures open interest as traders and investors opened long positions anticipating further gains. Bybit and Gate.io similarly recorded significant increases in their open interest.

Going forward, experts believe that Bitcoin is entering a delicate phase as long-term holders begin selling for the first time since early 2024. This profit-taking increases the likelihood of near-term volatility. ETFs and institutional buyers are absorbing the distributed supply, but the sustainability of this demand will determine Bitcoins next move.

If buyer momentum fades, sharp price drops could trigger broader declines, which could make the market structure vulnerable despite the ongoing bull cycle.