The landscape of centralized exchanges (CEXs) is undergoing a massive shift. According to the latest data from CryptoQuant, the “exit” phase of the current crypto bear market appears to be moderating. While billions of dollars worth of stablecoins were fleeing exchanges just a few months ago, that trend has slowed significantly, giving way to a new era of capital concentration.
Leading the charge is Binance, which now commands a staggering 65% of the total USDT and USDC reserves across all centralized exchanges. This massive consolidation suggests that while investors are still cautious about jumping back into Bitcoin or Ethereum, they aren’t necessarily leaving the ecosystem—they are simply picking a primary fortress to wait out the storm.
Why Capital is Concentrating Rather Than Leaving
The numbers tell a story of stabilization. Over the past month, stablecoin outflows from CEXs totaled roughly $2 billion. While that sounds like a lot, it is a sharp drop compared to the $8.4 billion in redemptions seen in late 2025. According to Nick Pitto, Head of Marketing at CryptoQuant, this is a sign that capital is “consolidating” rather than “rushing out.”
Investors are currently parking their funds in stable assets, specifically on Binance, awaiting a clearer signal to re-enter the market. Binance’s reserves of USDT and USDC have climbed to $47.5 billion, a 31% increase from the same time last year.
The dominance is even more pronounced when looking at specific assets. Binance’s liquidity is heavily driven by Tether (USDT), with the exchange holding $42.3 billion in USDT compared to just $5.2 billion in USDC. This suggests that USDT remains the undisputed king for traders looking for deep liquidity during volatile periods.
Is the Bitcoin Bottom In? CryptoQuant Flags $55,000 Support
Despite the fact that money is staying on exchanges, analysts warn that the “ultimate bottom” for Bitcoin might still be a few months away. While Bitcoin has been hovering in the high $60,000s, CryptoQuant’s on-chain indicators suggest that a final “capitulation” event hasn’t happened yet.
The key level to watch is $55,000. This represents Bitcoin’s realized price support—the average price at which all BTC was last moved. Historically, Bitcoin tends to test this realized price during the deepest part of a bear market.
The Road to a Bullish Reversal
For the market to flip from “consolidating” to “bullish,” two things need to happen:
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Reserve Growth: Stablecoin reserves on exchanges need to start growing again, indicating new money is entering the system.
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Deployment: The “dry powder” currently sitting on Binance needs to be moved into risk assets like Bitcoin and Altcoins.
Currently, the market is in a “wait-and-see” phase. With Binance holding 65% of the liquidity, any major move—either a further drop toward $55,000 or a breakout toward new highs—will likely start there. For now, the “concentration” of capital on a single platform highlights Binance’s role as the primary liquidity hub for the global crypto market.
