Even as bearish pressure builds, Bitcoin’s price continues to hold above the $109,000 mark after its recent rebound that pushed its price beyond $110,000. BTC’s rebound has triggered a wave of renewed conviction, as evidenced by massive outflows by whales on the Binance crypto platform.
Large BTC Holders On Binance Draining Holdings
As Bitcoin surges toward its current all-time high, key investors on the largest cryptocurrency exchange, Binance, are exhibiting a positive sentiment toward the flagship asset. Darkfost, an on-chain expert and verified author, reported that Bitcoin whales are steadily but silently withdrawing their holdings from the leading crypto exchange.
In the Quick-take post shared by the leading on-chain data analytics platform CryptoQuant, the expert stated that this behavior of BTC whales on Binance is “quite surprising at the moment.” This might be due to the fact that the trend is gaining momentum in light of a maturing market landscape.
Particularly, the consistent withdrawals by key players coincide with Bitcoin’s recent display of tenacity by remaining above the $100,000 threshold. The notable resiliency of the asset is likely the main factor fueling this steady outflow of large-scale BTC on the Binance platform, which challenges the notion of a sell-off during strong price spikes.
Historically, BTC whales on Binance seize the chance to sell coins and make profits when the flagship asset moves close to or exceeds its all-time high. Such an action is indicative of a notable increase in capital or inflows into the crypto exchange.
After examining and contrasting the monthly inflow volumes on Binance, Darkfost revealed large inflows into the platform as BTC reached a top in early 2024. During the period, large-scale BTC inflows rose to a value of $5.3 billion. In addition, a significant amount of $8.45 billion and $7.24 billion BTC inflows were recorded at the height of the preceding cycle, which were succeeded by short-term to medium-term corrections.
Meanwhile, in recent market trends, Bitcoin’s rally toward a new all-time high is being met by strong conviction above further growth. Data shows that BTC inflows into Binance are currently down to about $3 billion, suggesting that whales would rather stay on their investments and are anticipating even bigger profit chances in the future.
Overall, Darkfost has warned that the current position of Binance whales should not be disregarded. This is because it clearly signals a bullish sentiment on their end, considering the significant market impact that these whale inflows can produce.
A Huge Drop In BTC Exchange Reserves
Interestingly, these withdrawals are spotted among all cryptocurrency exchanges in the sector. Market expert Kyle Doops highlighted that over 550,000 BTC, valued at approximately $59.67 billion at current price levels, have been withdrawn from crypto exchanges’ reserves over the past year.
According to Kyle Doops, the substantial outflows are a sign of panic, but of conviction. With BTC constantly leaving exchanges, supply becomes limited, and demand rises, which could pave the way for continued price increases.
Featured image from Getty Images, chart from Tradingview.com
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