Bybit December Report Shows Shift From BTC to USDT Holdings

Crypto exchange Bybit released its latest Proof of Reserves report. This reveals a noticeable shift in user asset composition. The snapshot, dated December 17, shows lower holdings of Bitcoin and Ethereum. While stablecoin balances increased sharply. The data comes from Bybit’s 29th reserves disclosure. It compares user assets with on-chain wallet balances to confirm full backing.

Bitcoin and Ethereum Balances Trend Lower

According to the report, user held Bitcoin stood at around 63,200 BTC. This marked a decline of 5.49% on November 19. In absolute terms user BTC balances fell by roughly 3,674 BTC over the period. Ethereum holdings followed a similar pattern. User balances dropped to about 536,800 Ethereum, down 6.67% month over month. 

This represents a reduction of more than 38,000 ETH. The decline suggests some users reduced exposure to major cryptocurrencies during December. Market participants often rebalance holdings near year-end, especially during periods of lower volatility or consolidation.

Stablecoin Holdings See Strong Growth

While BTC and ETH declined, stablecoins moved in the opposite direction. User-held Tether rose to approximately 6.05 billion USDT. This was an increase of about 8.13% or roughly 455 million USDT compared with the previous snapshot. Another stablecoin, USDE, also saw growth. User balances climbed more than 15% to around 472 million units. The rise in stablecoin holdings points to a more defensive positioning by users. Such shifts are common when traders reduce directional risk. Holding stablecoins allows users to stay liquid while waiting for clearer market signals.

Reserve Ratios Remain Above 100%

Despite changes in asset mix, Bybit reported reserve ratios above 100% across major tokens. This means the exchange holds more assets in its wallets than users collectively own. For Bitcoin, the reserve ratio stood at around 103%. Ethereum and USDT reserves also exceeded the 100% threshold. Several altcoins showed even higher coverage, with some reserve ratios reaching 120% or more. Bybit stated that users can compare on-chain wallet data with reported user balances. This transparency aims to reassure customers following industry-wide scrutiny of exchange solvency.

What the Data Suggests About User Behavior

The December report highlights a shift in sentiment rather than stress. There were no signs of sudden withdrawals or reserve shortfalls. Instead, the data points to gradual reallocation. Lower BTC and ETH balances suggest reduced exposure to price swings. Meanwhile higher stablecoin holdings indicate caution and capital preservation. As markets move into the new year, user behavior may shift again. Much will depend on macro conditions, liquidity and broader crypto market momentum. Currently, Bybit’s latest disclosure shows steady reserves and a clear trend toward stablecoins. The exchange’s next report will indicate whether this positioning holds into early 2026.