Exchanges Battle Weak Buying Power as Binance Recovers

 Key crypto exchanges recorded reverse buy ratios. Just three platforms experienced an increase in December. Binance reverted to a small positive scale.

Last month, the large crypto exchanges were grappling with weak purchasing power. Data on CryptoQuant showed troubling results on the major platforms, with only three exchanges having a positive average in December.  

OKX and Kraken gained 0.001 and 0.004, respectively. Upbit led the list with a 0.062 positive ratio. The remaining 7 platforms had negative buying power, with Bitget being the worst at -1.2083.  

 Source: CryptoQuant

Capital Flight Outpaces Fresh Inflows

There was a differing capital pattern across regions in December. Upbit maintained a good purchasing power of 0.4209. Coinbase Advanced fell to –0.0878. Kraken was close to neutral at -0.0119.  

The data provided by CryptoQuant points to professionals liquidating their holdings. Bitcoin price remained around $90,000 throughout the month, and the position gain was only meager despite the price stability.  

The buying power ratio compares BTC withdrawals to steady coin inflows. A decreasing ratio indicates that the money is going out at a rate higher than it is coming in. Stablecoins had net inflows of 436 million and outflows of 3.7billion in December.  

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Binance Shows Modest Recovery Signs

By January 3, Binance was performing better. Its purchasing power parity increased to 0.064 as compared to -0.093. Later in the month, in late December, the ratio regained its lost value to 0.059.  

The lowest weekly ratio was -0.200 on December 21, and since then, it has in positive. Last month, the average monthly inflow was 21.7 BTC, and the deposits increased 34 times since January 2024.  

Bitcoin reserves declined to 6,650 coins per week, a loss of approximately $612m. Outflows were registered on seven out of the top ten platforms, and the overall net loss stood at 0.293 percent across all the exchanges.  

At the end of the month, Coinbase earned 1,648 BTC. Binance reserves experienced the biggest decrease of 4,684 BTC, whereas Kraken experienced the second-biggest decrease of 3,872 BTC.  

The two exchanges share approximately 2.27 million BTC, which is equivalent to approximately 209 billion dollars. That concentration is 82.7% in Binance, Coinbase, and Kraken. A total of 65.4 per cent of structural dominance includes Coinbase and Binance reserves.  

The 30‑day ratio stayed at –0.126. Stablecoins pulled out $1.96 0-billion and BTC withdrawals were 15.6 0-billion, all in the period.

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