XRP Ready for "Huge Squeeze" Against Bitcoin, Top Trader Says

XRP is demonstrating the potential for a significant squeeze against Bitcoin, with the XRP/BTC pair currently standing at 0.00000945

Top crypto exchange Binance has revealed a significant decrease in XRP reserves, dropping from 3.02 billion XRP in August to 2.78 billion XRP in September. This marks a decrease of 174.89 million XRP or 5.7%.

Binance XRP reserves have seen a continuous decline throughout 2023, starting the year with 4.46 billion XRP and losing 1.7 billion XRP over the last seven months. The exchange's XRP reserves have been fluctuating since August 2022, when they began to decline rapidly.

Binance's latest proof-of-reserves report also reveals a decrease in users' Bitcoin and Ethereum holdings, while USDT holdings continue to increase. The report, which provides a snapshot of Binance users' assets on September 1, shows that Bitcoin holdings decreased by 1.27% to 605,000 BTC, while Ethereum assets dropped 4.58% to 4.486 million ETH.

However, Binance users' USDT assets saw a significant increase, rising by 4.34% to reach 22.11 billion USDT. This trend of decreasing crypto holdings and increasing stablecoin holdings has also impacted XRP, leading to a decrease in its reserves on Binance.

Despite the decrease in XRP holdings, the movement toward stablecoins indicates that users are choosing to remain in the crypto market while awaiting more favorable conditions before reinjecting funds into assets like XRP.