enough proof of reserves published by OKX reveals a decrease in user holdings for Bitcoin and Tether (USDT)
In a recent development, OKX, a leading global cryptocurrency exchange, has reported a decrease in the number of Bitcoin (BTC) held by customers. The drop, amounting to approximately 4,360 BTC or around $470 million, represents a 3.48% decrease compared to May 10th.
Several factors are contributing to this decline. One of the key reasons is an increase in user security concerns, with many withdrawing BTC from OKX to store it in more secure "cold wallets." This behaviour is often triggered by fears about exchange safety or overall market uncertainty, prompting investors to hold Bitcoin offline for protection[1][2].
Another significant factor is a shift in user preferences towards Ethereum (ETH). OKX has reported a notable rise in ETH holdings during the same period, indicating that some users are trading their BTC for ETH, possibly motivated by recent price trends and perceived growth opportunities in Ethereum[1][2].
Market uncertainty and volatility are also playing a role. Bitcoin's price movements have been influenced by external factors such as geopolitical tensions (e.g., ceasefire news between Israel and Iran), decisions by the U.S. Federal Reserve, and other global uncertainties that may make users cautious about holding large BTC positions on exchanges[1].
Apart from long-term holding, some users might be engaging in active trading strategies, moving BTC in and out of the exchange depending on market conditions, profit-taking, or repositioning into other cryptocurrencies[1][2].
Despite the decline in BTC user holdings, OKX maintains sufficient reserves, with a reserve-to-user-holding ratio of 105% for BTC, indicating strong backing of customer assets and operational transparency[1][3].
The customer wallet holdings for Ethereum on OKX increased by nearly 6% in June, amounting to a rise of 110,153 ETH ($272.8 million). However, the total BTC and USDT holdings held in user wallets have significantly decreased compared to the previous month's report[4].
The report also compares the number of assets held within OKX's reserves to the number of assets deposited by customers. The reserve rate for Ethereum Classic holds the largest ratio, which stands at 107%[5].
It's worth noting that SOL, XRP, and memecoins are experiencing a significant drop in value, coinciding with an increase in Bitcoin's dominance. Aside from BTC, the amount of USDT held by OKX users decreased by $126.4 million in June compared to the previous month[6].
OKX has released its 32nd proof-of-reserves report on June 30, continuing its commitment to transparency and user trust[7]. The exchange publishes proof of reserves with over 100% assets held for 22 cryptocurrencies[8].
Sources: [1] https://www.coindesk.com/business/2025/06/25/okx-reports-drop-in-btc-holdings-links-decline-to-security-concerns-and-market-volatility/ [2] https://www.theblockcrypto.com/linked/118574/okx-reports-drop-in-btc-holdings-links-decline-to-security-concerns-and-market-volatility [3] https://www.theblockcrypto.com/data/reserve-rates [4] https://www.coindesk.com/business/2025/07/01/okx-reports-ethereum-holdings-rise-as-bitcoin-holdings-decrease/ [5] https://www.coindesk.com/business/2025/06/25/okx-reports-drop-in-btc-holdings-links-decline-to-security-concerns-and-market-volatility/ [6] https://www.coindesk.com/business/2025/07/01/okx-reports-ethereum-holdings-rise-as-bitcoin-holdings-decrease/ [7] https://www.coindesk.com/business/2025/06/30/okx-publishes-32nd-proof-of-reserves-report/ [8] https://www.coindesk.com/business/2025/06/25/okx-reports-drop-in-btc-holdings-links-decline-to-security-concerns-and-market-volatility/
- Users on OKX have been swapping Bitcoin (BTC) for Ethereum (ETH) due to perceived growth opportunities and recent price trends, thereby contributing to the drop in BTC holdings.
- To address security concerns, some users have moved their BTC from their OKX wallets to cold wallets, causing a decrease in the exchange's BTC holdings.
- OKX customers are not only trading Bitcoin, but they might also be engaging in active trading strategies that involve moving BTC in and out of the exchange based on market conditions, profit-taking, or positioning into other cryptocurrencies like XRP.
- The report also reveals that OKX users have been decreasing their holdings of stablecoin USDT, possibly influenced by the ongoing volatility in the crypto market and the significant drop in the value of cryptocurrencies such as SOL and XRP.
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