TLDR:
- Coinbase reserves surged to $112B, highest since November 2021, with BTC, ETH, and stablecoins leading inflows.
- Analysts link higher exchange reserves to improved market liquidity and stronger price momentum in past cycles.
- Stablecoin balances jumped, suggesting large buying power waiting to be deployed into crypto markets soon.
- Both retail and institutional players are sending fresh capital to Coinbase, hinting at an accumulation phase.
Crypto traders are watching Coinbase closely. Its reserves have touched $112 billion, the highest level since 2021. This includes Bitcoin, Ethereum, and ERC20-based stablecoins.
Market watchers say this kind of buildup often precedes stronger trading activity. It could be a sign of fresh demand returning to crypto markets.
Coinbase Liquidity Hits Four-Year High
Data from CryptoQuant showed that Coinbase Advance now holds $112 billion in combined reserves. That figure includes Bitcoin, Ethereum, and dollar-pegged stablecoins. It is the largest balance since November 2021, right around the peak of the last crypto cycle.
The increase points to new inflows from both retail and institutional traders. Analysts say growing reserves usually bring better liquidity, which often fuels smoother price action. Higher liquidity also tends to reduce volatility during big moves, making order books deeper and more efficient.
CryptoQuant’s on-chain analyst CryptoOnchain shared that past cycles show a link between rising exchange reserves and price momentum. Investors could be positioning ahead of the next major market swing. Coinbase’s role as a major fiat on-ramp gives weight to these flows.
These reserve levels suggest that capital is not just sitting idle but preparing to be deployed. The return to 2021 levels may hint that traders are gearing up for more activity.
Coinbase Reserves Hit $112B in BTC, ETH & Stablecoins — Highest in 4 Years
“In past cycles, rising reserves on major exchanges like Coinbase have often coincided with higher market liquidity and bullish price momentum.” – By @CryptoOnchain pic.twitter.com/64VDXP51i5
— CryptoQuant.com (@cryptoquant_com) September 19, 2025
BTC and ETH Accumulation Signals Market Rebuild
Bitcoin and Ethereum make up the bulk of these reserves, showing renewed confidence in blue-chip crypto assets. Traders appear to be moving funds onto exchanges rather than withdrawing to cold storage. That behavior is usually associated with readiness to trade, not long-term holding.
Stablecoin balances also surged, which usually signals fresh buying power waiting on the sidelines. When stablecoin reserves rise, it means investors have liquidity ready to enter positions quickly.
Coinbase remains a key liquidity hub for U.S. institutions. Its rising balances could help keep spreads tight and support price discovery. Market participants are watching closely to see whether this trend continues over the coming weeks.
If inflows persist, it could mark the beginning of a longer accumulation phase. Such a pattern has historically been seen near the start of bullish cycles.
