Gate.io and Bybit Data Reveals Traders Are Done With Risk Assets for Now
Reserve stories from main exchanges Gate and Bybit paint a transparent image of deteriorating danger urge for food, as merchants flee risky cryptocurrencies in favor of stablecoins.
User holdings of Bitcoin and Ethereum on Bybit declined sharply in October, whereas USDT balances surged by practically 28%, as expectations for a fee minimize light and market volatility intensified.
Bybit’s latest Proof of Reserves snapshot, dated October 22, exhibits person BTC holdings at roughly 64,000 cash, down 3.13% or 2,068 BTC from September’s depend.
Ethereum holdings declined much more steeply, falling 5% to 542,200 ETH, a lack of 28,549 cash.
Meanwhile, person USDT balances elevated by 27.89% to roughly 6.389 billion, an increase of 1.393 billion.
The exodus from danger belongings got here as Bitcoin hovered close to $108,000 and Federal Reserve Chair Jerome Powell indicated a slower path to coverage reduction.
Exchanges Maintain Strong Reserve Ratios Despite Asset Shift
Both platforms reported wholesome reserve protection regardless of the modifications in person holdings’ composition.
Bybit maintained a 103% reserve ratio for Bitcoin and a 101% reserve ratio for Ethereum, guaranteeing pockets balances exceeded person liabilities throughout all main tokens.
USDT reserves reached 110%, reflecting the platform’s capability to accommodate surging stablecoin demand through the flight to security.
Gate released figures as of October 28 exhibiting complete reserves of $11.676 billion with an general reserve ratio of 124%.
BTC reserves stood at 24,833 cash in opposition to person balances of 18,537, pushing the surplus reserve ratio from 33.48% to 33.96%.
ETH reserves climbed to 419,096 tokens, lifting the surplus ratio from 23.58% to 25.93%. USDT reserves grew to roughly 1.58 billion, masking person holdings of round 1.33 billion with an 18.74% buffer.
Reserve ratios for altcoins, together with GT, DOGE, and XRP, all exceeded 100%, reaching 150.98%, 108.12%, and 116.66% respectively.
Gate’s reserves now cowl practically 500 varieties of person belongings, the corporate mentioned, utilizing a Merkle Tree and zk-SNARKs algorithm for verification.
Market Pressure Mounts as Whales Move Coins and Retail Fades
Bitcoin slipped below $108,000 early Monday, extending a danger reset that accelerated late final week.
The pullback snapped October’s “Uptober” narrative, which merchants now reframe as “Red October” as they head into November.
Ether fell 3.8% to $3,737 whereas XRP dropped 3.1% to $2.43, dragging complete crypto market capitalization down 3.1% to $3.69 trillion.
Thin vacation buying and selling, with Tokyo closed for a public vacation, amplified intraday swings through the early Asian hours, in line with a Cryptonews report.
Bitcoin slipped under $108K in early Asia commerce as fading Fed rate-cut hopes and Powell’s warning over a December transfer ended its “Uptober” streak, conserving merchants on edge.#bitcoin #CryptoMarket https://t.co/5jdPnMu9ZA
— Cryptonews.com (@cryptonews) November 3, 2025
Elevated leverage constructed by means of October left lengthy positions susceptible, and as costs slipped, compelled liquidations pushed spot ranges decrease.
Traders cited fading confidence in a sooner easing cycle and a stronger greenback because the quick catalysts for the selloff.
Large holders added to the promoting stress.
According to a latest Cryptonew report, on-chain knowledge from Lookonchain exhibits that the pseudonymous whale BitcoinOG deposited roughly 13,000 BTC, value $1.48 billion, to Kraken since October 1, together with 500 BTC on November 2.
Early adopter Owen Gunden transferred 3,265 BTC, valued at $364.5 million, to Kraken since October 21, reactivating wallets that had been dormant for years.
Another Bitcoin OG, recognized for shorting Bitcoin throughout main swings, reportedly earned practically $197 million by timing the October 11 crash.
Retail participation continued its steep decline. CryptoQuant data exhibits day by day inflows from small holders to Binance have collapsed from round 552 BTC in early 2023 to simply 92 BTC at the moment, a drop of greater than 80%.
The 90-day transferring common has declined by over 5 instances since spot ETFs have been launched in January 2024, as retail traders shifted to ETF merchandise or moved into long-term holdings, leaving institutional gamers and company treasury methods to dominate market flows.
Yet, even institutional urge for food seems selective as they face sustainability challenges. “When digital asset treasury corporations commerce under NAV, that’s not a bubble bursting, that’s the market’s incapability to cost infrastructure throughout a section transition,” mentioned Eva Oberholzer, Chief Investment Officer at Ajna Capital.
“This is strictly what occurred with web infrastructure corporations in 2001.” She famous that public fairness markets are pricing digital asset treasury corporations primarily based on present money flows.
She added that strategic consumers worth them primarily based on future utility worth, creating systematic undervaluation at the moment, a sample paying homage to PayPal buying and selling under its money worth in 2002 earlier than surging 400% inside eighteen months.
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