Decrease in Binance's Bitcoin Reserves Accompanied by Peak Unrealized Profits
Binance, the world's largest cryptocurrency exchange, has seen its unrealized profit on Bitcoin (BTC) reserves reach an all-time high of around 60,000 BTC, equivalent to approximately $7 billion, primarily due to the sharp rise in Bitcoin’s price.
The surge in BTC’s market price, which climbed to around $118,816 by mid-2025, has significantly amplified unrealized gains, even as Binance’s total BTC reserves have declined since September 2024. Simultaneously, Binance's BTC reserves dropped by approximately 9%, from about 631,000 BTC in September 2024 to 574,000 BTC in July 2025.
This decline is attributed to gradual outflows reflecting user withdrawals and possible strategic liquidity management by Binance. Analysts suggest that some BTC may have been reallocated or partially liquidated to capitalize on bullish market conditions without harming the overall unrealized profit position.
The rise in Bitcoin prices has boosted the difference between purchase cost and current value of holdings, thereby boosting unrealized profits. Meanwhile, the trend towards self-custody or long-term holding among users reflects confidence in BTC’s value, reducing Binance's balance sheet.
Binance appears to be managing its liquidity by trimming reserves cautiously while maintaining a substantial unrealized profit "cushion" that lessens pressure to sell during volatility. Peaks in unrealized profits often precede new Bitcoin all-time highs when accompanied by active distribution phases. Currently, no massive sell-off from Binance is evident, suggesting a resilient accumulation strategy and bullish investor sentiment.
The tracking of Binance's BTC reserves provides insight into long-term market sentiment. Other platforms, including Crypto.com, Coinbase, Bybit, and OKX, also registered high spot trading activity during the period. Bybit and Gate.io similarly recorded significant increases in their open interest.
Experts believe that Bitcoin is entering a delicate phase as long-term holders begin selling for the first time since early 2024. If buyer momentum fades, sharp price drops could trigger broader declines, making the market structure vulnerable despite the ongoing bull cycle. However, ETFs and institutional buyers are absorbing the distributed supply, and the sustainability of this demand will determine Bitcoin's next move.
It is worth noting that Binance holds about 16,000 BTC in custodial wallets to back its BTCB token. The exchange's BTCB token ensures sufficient liquidity for tokenized Bitcoin on the BNB Chain.
In conclusion, the combination of Bitcoin’s price rally, user withdrawals reducing reserves, and Binance's strategic liquidity management has created this unique condition of record unrealized profits alongside a decline in BTC holdings since September 2024. This situation underscores the dynamic interplay between exchange reserves, user behavior, and market sentiment in the cryptocurrency market.
[1] CryptoQuant (2025). "Binance's BTC Reserves Fall as Price Hits New High: What Does This Mean?" [Online]. Available: https://cryptoquant.com/news/binance-btc-reserves-fall-as-price-hits-new-high-what-does-this-mean/
[2] CoinDesk (2025). "Binance's Unrealized Bitcoin Profit Hits All-Time High." [Online]. Available: https://www.coindesk.com/news/2025/07/15/binances-unrealized-bitcoin-profit-hits-all-time-high/
[3] Bloomberg (2025). "Binance's Bitcoin Reserves Decline as Price Surges." [Online]. Available: https://www.bloomberg.com/news/articles/2025-07-18/binance-s-bitcoin-reserves-decline-as-price-surges
[4] Reuters (2025). "Binance's Bitcoin Withdrawals Indicate Stronger Holder Conviction." [Online]. Available: https://www.reuters.com/business/finance/binances-bitcoin-withdrawals-indicate-stronger-holder-conviction-2025-07-20/
- The world's largest cryptocurrency exchange, Binance, currently holds an all-time high unrealized profit on Bitcoin (BTC) reserves, amounting to around 60,000 BTC or approximately $7 billion, primarily due to the surge in BTC's price.
- Despite a decline in Binance’s total BTC reserves since September 2024, the exchange's unrealized gains have significantly amplified due to Bitcoin’s price climb to around $118,816 by mid-2025.
- Binance's strategic liquidity management, coupled with user withdrawals, has led to a drop in BTC reserves from about 631,000 BTC in September 2024 to 574,000 BTC in July 2025, with some BTC potentially reallocated or liquidated to capitalize on bullish market conditions.
- Analysts suggest that peaks in unrealized profits, like Binance's current record, often precede new Bitcoin all-time highs during active distribution phases, indicating a resilient accumulation strategy and bullish investor sentiment in the cryptocurrency market.
