Binance Holds 23% of BTC as Bitcoin Decouples from Stocks

Binance now holds 23% of all Bitcoin available on centralized exchanges, according to on-chain data.

This share places the exchange in a leading position in terms of Bitcoin custody, well ahead of its competitors.

Although centralized platforms continue to see widespread outflows, Binance’s reserves have allegedly stayed the same.

Since the market correction of March 2020, Binance has gradually increased its share of Bitcoin held on exchanges.

Other platforms have seen steady reserve depletion, while Binance has accumulated. This trend has contributed to a more concentrated distribution of Bitcoin liquidity.

The exchange’s dominant position may reflect investor preference for large platforms that offer deeper liquidity and established infrastructure.

However, some analysts have raised concerns about the risks associated with centralization in an otherwise decentralized market.

Rising Outflows Signal Growing Long-Term Holding Behavior

Recent data from CryptoQuant shows that Bitcoin outflows from exchanges are at their highest levels since February 2023.

The 100-day moving average of net exchange flows is at its lowest point in over a year.

This trend suggests that more users are choosing to withdraw their assets from exchanges and possibly move them to cold storage.

The number of addresses depositing Bitcoin to exchanges has also declined. According to analyst Axel Adler Jr., the 30-day moving average of this metric has dropped to a level last seen in December 2016. He said,

“This trend is bullish in itself.”

He noted that the shift represents “a fourfold reduction in coin sales over the last three years.”

The decline in exchange deposits is often interpreted as a signal of reduced selling pressure. The current market structure may support a more stable price environment with fewer coins being made available for sale.

Bitcoin Shows Early Signs of Decoupling from Traditional Assets

In the past week, Bitcoin (BTC) gained over 10% against the U.S. dollar. At the same time, its correlation with major indices like the S&P 500 and Nasdaq Composite has weakened.

Data shows BTC’s correlation with the S&P 500 dropped from 0.88 in late 2024 to 0.77. Its correlation with the Nasdaq declined from 0.91 in Jan. 2025 to 0.83.

This trend suggests Bitcoin may be starting to decouple from equities. In recent years, Bitcoin closely mirrored stock movements during periods of macroeconomic volatility. Now, it is charting a more independent path.

Global analysts have attributed the shift to a weakening U.S. dollar and potential progress in geopolitical negotiations. While these factors remain speculative, they may influence investor sentiment toward risk-on digital assets.

Bitcoin and Gold Show Increasing Similarities

As Bitcoin moves further from equities, its correlation with gold is rising. In early Apr., BTC’s correlation with gold stood at -0.62.

That figure has now improved to -0.31, suggesting a convergence between the two assets.

Both Bitcoin and gold are regarded as stores of value with limited supply. Bitcoin’s capped supply of 21 million coins supports its comparison to gold during inflationary or uncertain economic periods.

Historical data shows Bitcoin often trails gold’s price movements with a lag. If gold maintains upward momentum, Bitcoin could follow suit in the months ahead—though such patterns remain dependent on broader sentiment and market reactions.

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