Bitcoin Reserves on Coinbase the Lowest Since December 2017

[pooya87]

Coinbase having low bitcoin reserves can also mean that these centralized exchanges are diversifying more of their value into Alts and not just Bitcoin by, for example, exchanging their BTC for these Alt-coins.

First of all exchanges don't really own those bitcoins. The balance belongs to users who have deposited their bitcoins on exchanges for trading and the exchange can't just sell those coins themselves!
Even if they do open orders on their own platform to sell those bitcoins for shitcoins, there still has to be other traders who have signed up on their platform to buy bitcoin with their shitcoins (aka dump their shitcoin) and then withdraw those bitcoins which is the same thing as people dumping shitcoins and withdrawing bitcoin as ever!

[leea-1334]

- Crypto owners prefer to keep their coins in their own private wallets. Hopefully open-source and non-custodial ones.

This is not proven though,,, and if I judge from the people I know and interact with, they are simply just leaving their coins in other types of services accounts. I even admit I keep a small amount in casinos to gamble with and sometimes I should be withdrawing it all but I leave it there to perhaps gamble with a bigger bankroll down the line,,, not wise, but I think this is also the behavior of majority of us.