Coinbase, Binance are in the bear market

The exchange balance is the amount of Bitcoin sitting on exchanges and was following a downward trend since January 2022 for both Coinbase and Binance when suddenly the exchange balance took a turn and started to spike in May. It is still increasing, while the exchange balance on Coinbase continues to fall.

The table shows the cumulative Bitcoins exchange balance, price, and exchange balances of both the exchange giants, Binance and Coinbase.

The green line representing the cumulative exchange balance has been down since February. This number is under 2,4 million, and there is a net outflow of 200,000 Bitcoins.

This means that the supply ofBitcoin has been removed from exchanges, indicating a long-term bullish holding tendency.

The overall balance has been followed by the coinbase. The exchange held more than 690,000 Bitcoins at the beginning of the year and fell below 560,000 in eight months.

The chart shows the movements of coins on Coinbase. Red lines represent the departure of the exchange, while greens indicate incoming balances. Since the beginning of the year, there has been a lot of withdrawal ofBitcoin. The amounts taken out doubled once between March and May, and again in July.

The fact that U.S institutions prefer Coinbase may have played a role in these transactions. Institutions are more likely to operate on a buy-and- hold basis when faced with a bear market, which may have motivated them to pull their Bitcoins out of Coinbase.

Even though getting caught in the same downtrend at the beginning of the year, Binance ended up with more Bitcoins than January. The exchange started the year with 586,000 Bitcoins, fell below 560,000 until May, and ended up with 623,000 Bitcoins as of August.

The chart shows the shrinking Bitcoin reserves between February and May.

Coinbase and Binance are in the bear market.

The news from the past few months shows that both Binance and Coinbase are handling the winter market differently. While Binance doesn't flinch in the harsh winter conditions and continues to put its customers first, Coinbase deals with layoffs, lawsuits, and bankruptcy speculation.

Before the coldest winter in criptocurrency history, Binance U.S. was valued at $4.5 billion in a seed funding round, and the exchange took the first step towards expanding in Abu Dhabi. Even after the winter started, Binance continued its investments and hiring. According to Changpeng Zhao, the CEO of Binance, said that the company is in a very wealthy position and will start acquiring other companies soon.

Just before the winter began, Coinbase had to deal with the bankruptcy wordings in its quarterly report. Coinbase users lost their Wormhole Lunas while trying to send to the exchange, which Coinbase refused to help with at the time. The exchange was sued by its customers and Craig Wright. Coinbase staking product is also put under investigation by the SEC, in addition to dealing with them.

The exchange laid off 1,100 employees after a petition against executives, because of un-hired new recruits due to market conditions. According to Goldman Sachs, Coinbase's revenue may decline by 61% due to the winter conditions, and the company might need to fire more workers to survive.