Bybit's BTC and ETH Reserves Hit All-Time Highs Amid USDT Decline

Bybit, a leading cryptocurrency exchange, has reported a significant increase in its Bitcoin (BTC) and Ethereum (ETH) reserves, while its Tether (USDT) balance has decreased. According to its 24th Proof of Reserves report dated June 19, 2025, Bybit now holds 53,906 BTC and 646,987 ETH, marking its highest reserve levels to date. However, its USDT balance fell by 7.44%, raising questions around liquidity flow and inter-market dynamics.

This report underscores how centralized exchanges continue to embrace greater transparency following past trust crises. Bybit added 884 BTC to its wallets over the past month, boosting confidence among investors amid renewed market volatility. On the Ethereum side, a substantial addition of 37,168 ETH brought total reserves to 646,987. Analysts note that these increases align with heightened interest surrounding spot ETF developments, which often prompt major wallet shifts and institutional rebalancing.

Such growth reinforces how seriously crypto stakeholders now regard on-chain reserve verification, a standard that has emerged in the wake of industry-wide calls for accountability. The sharp drop of 386 million USDT in the same period stands in contrast to the bullish accumulation of BTC and ETH. Experts point to two primary causes: users withdrawing USDT for margin collateral and increased arbitrage activity between platforms. Additionally, as Tether’s issuer releases more frequent reports, some users may be reallocating funds to take advantage of shifting risk profiles or rates.

Bybit representatives maintain that the reduction falls within normal liquidity cycles and that overall platform solvency remains intact. Still, the transparency race is heating up, with major exchanges like Binance, OKX, and KuCoin releasing monthly reserve updates in a bid to maintain user trust. The rapid adoption of PoR disclosures speaks to a broader shift in the centralized exchange landscape. Once optional, such reporting is now seen as an essential layer of investor protection and a proactive measure in combating rumors and skepticism.

While these reports are not a complete solution, they are an important part of restoring and maintaining user confidence—particularly in volatile market phases. The increase in BTC and ETH reserves at Bybit indicates a growing confidence among traders and investors in these two major cryptocurrencies. BTC, known for its stability and widespread acceptance, and ETH, renowned for its smart contract capabilities and decentralized applications, have long been considered cornerstones of the crypto market. The surge in their reserves suggests that Bybit users are bullish on the long-term prospects of these assets, despite recent market fluctuations.

The drop in USDT balance, on the other hand, could be attributed to several factors. USDT, a stablecoin pegged to the US dollar, is often used as a safe haven during market turbulence. The decrease in USDT reserves might indicate that traders are moving away from stablecoins and into more volatile assets like BTC and ETH, possibly in anticipation of price appreciation. Alternatively, it could signal a shift in trading strategies, with traders liquidating their USDT holdings to capitalize on opportunities in other cryptocurrencies.

The geopolitical landscape has also played a role in shaping market sentiment. Tensions in the Middle East, for instance, have led to a wave of de-risking, with traders reducing their exposure to risky assets. This has resulted in a sea of red for many crypto assets, including BTC and ETH, which have seen price declines in recent weeks. However, the resilience of BTC and ETH reserves at Bybit suggests that the exchange's users are not deterred by short-term volatility and remain committed to their long-term investment strategies.

Regulatory developments have also been a significant factor influencing market dynamics. The passage of the GENIUS Act, the first stablecoin legislation in the US, has set up a regulatory framework for crypto stablecoins. This legislation is expected to provide greater clarity and stability for the crypto market, potentially boosting investor confidence and driving further adoption of cryptocurrencies.

In summary, Bybit's new highs in BTC and ETH reserves, coupled with a drop in USDT balance, reflect a complex interplay of market sentiment, geopolitical tensions, and regulatory developments. While short-term volatility may continue to impact crypto prices, the underlying trends suggest a growing confidence in the long-term prospects of BTC and ETH. As the market navigates these challenges, Bybit's strategic positioning and user behavior will be crucial in shaping the future of the crypto landscape.