Bitcoin News Today: Bitcoin Deposits Fall 8.4K on OKX as Ethereum and Altcoins Attract More On-Chain Activity

Crypto exchange OKX has once again demonstrated strong reserve coverage with its 33rd proof of reserves report, confirming $28.8 billion in assets backing user balances, including 106% for Bitcoin and 101% for Ethereum. However, the report also reveals a notable trend: user-held Bitcoin on the platform has dropped by 8,395 BTC since May, representing a nearly $1 billion outflow. This has prompted speculation about the motivations behind the movement, particularly as Ethereum deposits have risen by 6% during the same period [1].

The decline in Bitcoin deposits stands in contrast to the increasing inflow of Ethereum. By the end of July, OKX users had added 110,153 ETH—worth around $272 million—bringing Ethereum’s reserve ratio to 101%. This suggests traders are increasingly choosing to keep Ethereum on exchanges rather than withdrawing it, a shift that may reflect the asset’s growing role in liquid staking, decentralized finance (DeFi), and tokenized assets. Bitcoin, in contrast, continues to be withdrawn, reinforcing its traditional association with self-custody and “getting off exchanges” [1].

The trend is not exclusive to Ethereum. OKX also reported rising reserves for smaller-cap assets such as XRP, which reached a 109% backing ratio—higher than any other major asset on the exchange. This indicates that traders are diversifying their portfolios, potentially seeking exposure to more volatile assets or anticipating regulatory developments for tokens like XRP [1].

Notably, OKX’s Bitcoin reserve ratio has increased by 1% since May, meaning the exchange still holds more Bitcoin than users have deposited. This suggests the outflow is not due to a liquidity crunch but rather a deliberate reallocation of capital by traders. The shift highlights a broader market sentiment change, with traders favoring Ethereum and other altcoins for their on-chain utility and growth potential [1].

Sources:

[1] OKX’s $28.8B Reserves Are Flawless. So Why Are Bitcoin Holders Fleeing?

https://crypto.news/okxs-28-8b-reserves-are-flawless-so-why-are-bitcoin-holders-fleeing/