The latest data indicates that Binance reserve ratio of Bitcoin has hovered around 20–21% (stable) for most of the time, with brief spikes in late July and early August that touched approximately 22–23% before quickly returning to its normal range.
The overall trend during this period has been slightly upward (an increase of about 1–2 percentage points at best), meaning that Binance's reserve share has remained significant without a dramatic structural shift.
What does this mean for the market?
Liquidity Concentration and the Role of “Price Making”
A 20%+ share means that a significant portion of tradable Bitcoin resides on Binance, thereby amplifying its flows and order activity in influencing global price movements (funding rates, order book delta).
The recent upward spikes (22–23%) may reflect net transfers to Binance (deposits) or a decrease in the reserves of competing platforms.
In both cases, the short-term outcome is an increase in the available supply on Binance compared to others, which tends to ease buying pressure and potentially increase price resistance if accompanied by a selling sentiment or high positive funding rates.
This rapid return to the 20–21% range suggests that the change was not structural; in other words, there has not yet been a permanent shift of Bitcoin to Binance at the expense of other platforms, but rather a temporary or tactical move.
Impact in a Derivatives-Dominated Environment
Given the dominance of futures trading on Binance, a high reserve share means that liquidation risks (both long and short) become more significant, as a larger portion of supply and liquidity is concentrated on a single platform.
Rising ratio with a rising price: This could indicate a steady feed of supply on Binance, which may weaken the likelihood of a strong upside breakout unless robust spot demand enters.
Falling ratio with a rising price: Usually a sign of a healthier uptrend, as it suggests relatively scarce supply on Binance.
Written by Arab Chain
