The Battle of Giants - While Coinbase Holds Custody of Major Bitcoin ETF Funds like Grayscale (GBTC) and BlackRock (IBIT), Binance Remains in Control of Spot Trading. Currently, Binance's Spot Volume Is 5 Times Larger Than Coinbase's. This Value Would Be Even Higher If We Considered the BTC-FDUSD Pair, Which Is Not Included in This Analysis.
A relevant observation arises when Coinbase's Volume Share increases relative to Binance's: we often witness a moment of price surge in Bitcoin. Conversely, when its share is reduced, we observe a shift in trend and frequent drops. This highlights the inverse dynamics of these two exchange giants, especially considering their dominance over Bitcoin reserves.
Furthermore, the Binance/Coinbase Volume Spot Ratio indicator clarifies the relationship between the volume of these exchanges. In early 2023, for example, Binance's volume was 53 times greater than Coinbase's, marking a crucial moment when Binance offered zero fees on spot trades for the BTC-USDT pair. Since then, with the intensification of ETF news, Coinbase's volume has begun to reclaim a larger market share relative to Binance.
The dynamics between these exchanges are complex, but the graphs show that each exchange's dominance at specific times has a direct impact on the price of Bitcoin. It's a true battle between the market's biggest players, where competition is constant, and the outcome is reflected in cryptocurrency movements.
Written by joaowedson
