Bitcoin showed some strength today, breaking through the $93,000 level, as buying saw a significant amount of activity across the cryptocurrency market. Even as prices head north, bitcoin stored on Binance is falling, according to on-chain data.
Shrinking supply on the major exchange is one of many forces that traders point to as tightening coins available for sale.
Binance reserves shrink
Based on an analysis by CryptoQuant, Binance’s Bitcoin reserves declined as more coins exited the exchange. Some of this shift comes from holders moving funds into special cold wallets for safekeeping.
Reports show that large buyers in the US – including spot ETF managers – are also withdrawing coins from the market and placing them with custodians.
These moves reduce the float available to traders and can add upward pressure on prices when demand rises.
Why are Binance’s Bitcoin reserves declining?
“Historically, such conditions have supported price appreciation in the medium to long term. The current trend suggests that Binance reserve decline is a natural re-accumulation phase.” – By @xwinfinance pic.twitter.com/g3TCG4o6GD
— CryptoQuant.com (@cryptoquant_com) December 3, 2025
Buy ETFs and self-deposit
According to analysts, US ETFs have been purchasing large amounts of Bitcoin for their products. The funds of large issuers are held by trusted custodians and not on trading platforms.
At the same time, common holders and whales often shift their holdings into self-deposit during rallies, indicating that they are not planning to sell soon.
Together, these trends are removing supply from exchanges and help explain why reserves on Binance are shrinking.
BTCUSD trading at $92,678 on the 24-hour chart: TradingView
Derivatives and liquidation
Financial derivatives activity also played a role in recent exchange balances. Daily futures sweeps have risen from averages of around $28 million and $15 million in the previous session to roughly $68 million and $45 million in the current run.
This surge in forced exits peaked on October 10, when more than $640 million per hour of long positions were liquidated as Bitcoin fell from $121,000 to $102,000.
Open interest fell by approximately 22% in less than 12 hours, falling from nearly $50 billion to $38 billion in that time.
Market Activity in Bitcoin Futures. Source: Glassnode
Still on the rise
While that liquidation was exciting, the futures market overall grew. Open interest reached a record high of $67 billion, and daily trading volume in futures reached $68 billion.
More than 90% of this activity is in perpetual contracts, which tends to amplify short-term moves. This combination leads to increased trading volume and the potential for sharp movements when sentiment turns.
Price levels to watch
Based on traders’ calls, the market is watching the $92,000-$94,000 area as a major resistance zone. A clean daily close above this range could accelerate momentum towards $100K.
Near-term support lies at around $88,000-$89,000, where buyers are expected to step in if prices decline. Trading volume on a busy day rose by nearly $86 billion, showing renewed interest from retail and institutional participants.
Featured image from Safelincs, chart from TradingView
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