Bitcoin showed some strength today, topping $93,000 as buying activity picked up across the digital currency market. Bitcoin stored on Binance is retreating even as prices rise, according to on-chain data.
The decline in supply on major exchanges is one factor that is causing traders to tighten the number of coins available for sale.
Binance Reserve Reduction
According to CryptoQuant’s analysis, Binance’s Bitcoin holdings have declined as more coins are leaving the exchange. Some of these changes come from holders moving their funds into personal cold wallets for safekeeping.
Large buyers in the US, including spot ETF managers, are also pulling coins from the market and depositing them with custodians, according to the report.
Such a move could reduce the liquidity available to traders and put upward pressure on prices as demand increases.
Why Binance’s Bitcoin Reserves Are Declining
“Historically, these conditions have supported medium- to long-term price growth. Current trends suggest that Binance’s reserve decline is a normal re-accumulation phase.” – by @xwinfinance pic.twitter.com/g3TCG4o6GD
— CryptoQuant.com (@cryptoQuant_com) December 3, 2025
Buy ETFs and Self-Storage
US spot ETFs have been purchasing significant amounts of Bitcoin for their products, according to analysts. Funds from large issuers are held by trusted custodians rather than trading platforms.
At the same time, common holders and whales frequently move their holdings into self-administration during rallies, indicating they have no plans to sell any time soon.
This trend helps explain why exchanges are removing supply and Binance’s reserves are decreasing.
BTCUSD trading at $92,678 on the 24-hour chart: TradingView
Derivatives and Clearing
Derivatives activity has also had an impact on foreign exchange balances recently. Daily futures wipes have increased from an average of about $28 million long and $15 million short in the previous cycle to about $68 million long and $45 million short in the current run.
The rise in forced liquidations 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 about 22% within 12 hours, from about $50 billion at the time to $38 billion.
Market Activity in Bitcoin Futures. Source: Glassnode
still high
These liquidations were dramatic, but futures markets grew overall. Open interest was a record $67 billion, and daily futures volume reached $68 billion.
More than 90% of that activity is on permanent contracts, which tends to amplify short-term movements. This combination increases both volume and the likelihood of sharp moves when sentiment flips.
Price levels to watch out for
According to Trader Calls, the market sees the $92,000-$94,000 area as the main resistance zone. Achieving a daily close above that band can accelerate momentum towards $100,000.
Short-term support is around $88,000 to $89,000, with buyers expected to step in if prices fall. Trading volume during the busy day rose to nearly $86 billion, showing renewed interest from both retail and institutional participants.
Featured image by Safelincs, chart by TradingView
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