Overview
Exchange reserve metrics quantify the total amount of Bitcoin stored on exchange addresses. These holdings represent potential sell-side supply and reflect market participants’ confidence in custodial platforms. A sustained decrease in reserves suggests rising preference for self-custody and long-term holding.

Formula (Latex Function format)

$ExchangeReserve_t = \sum Balances_{ExchangeWallets}$

$ExchangeBalanceRatio_t = \frac{ExchangeReserve_t}{TotalCirculatingSupply_t}$

Interpretation

• Falling reserves: outflows dominating inflows → accumulation and reduced sell pressure.

• Rising reserves: inflows dominating → increased liquidity and potential sell-offs.

• Balance Ratio ↓: structural supply contraction on exchanges.

Insights
Exchange reserves serve as a macro liquidity gauge. A persistent decline in reserves since 2020 has coincided with the rise of DeFi, self-custody solutions, and institutional cold storage adoption.

Available Metrics

• Exchange Reserve

• Exchange Reserve (USD)

• Exchange Balance Ratio