Recent information circulating in the community indicates that Binance is facing a large-scale withdrawal wave. As a 'giant' in the field of centralized exchanges (CEX), Binance not only manages a massive volume of digital assets but also holds one of the world's top amounts of Bitcoin (BTC). On November 19, Sani, who runs the timechainindex.com website, shared that this platform is experiencing significant capital outflow.
"In recent weeks, Binance has faced a wave of strong withdrawals, forcing the exchange to use reserve funds from its cold wallets to meet this demand," Sani said. "A few hours ago, they transferred 40,000 BTC between cold wallets and moved an additional 5,535 BTC to a new address, likely related to them. We will continue to monitor to determine where this money will ultimately go."
Binance is currently at the top of the famous 'Bitcoin Rich List', with the Pay-to-Script-Hash (P2SH) address '34xp4' containing 248,597.53 BTC, worth approximately 22.93 billion USD at the time of writing. This address has not performed any outgoing transactions for nearly two years, with the last transaction occurring on January 7, 2023. According to data from timechainindex.com, Binance is managing a massive amount of 738,349.58 BTC, distributed across thousands of addresses, with a total value of up to 68.08 billion USD.
Only Coinbase surpasses Binance in Bitcoin holdings. Reports from timechainindex.com show that this San Francisco-based exchange holds 1,067,857.30 BTC, valued at 98.47 billion USD. Data also reveals that centralized exchanges are currently controlling a total of 3,622,293 BTC, equivalent to 334 billion USD.
Recent information about the outflow from Binance and the use of the exchange's cold storage strategy highlights the role of these reserve funds in maintaining balance during periods of high withdrawal.
As a key pillar in the Bitcoin ecosystem, every move by Binance always attracts special attention, reflecting the impact of centralized exchanges on market sentiment and investor behavior. This simultaneously emphasizes the immense responsibility that CEX platforms must take on in managing the huge reserve of digital assets. As the price of Bitcoin hits record highs, the strategies that these exchanges adopt can shape future market trends.