Bitcoin Deposits To Binance Spike: Selling Not Over Yet?
On-chain data shows the Binance exchange has received large net Bitcoin inflows during the past day, indicating that BTC’s decline may extend further.
Bitcoin Binance Netflow Has Just Taken To Positive Values
In a new post on X, CryptoQuant community manager Maartunn discussed the latest trend in the Bitcoin exchange netflow for the cryptocurrency exchange Binance.
The “exchange netflow” here refers to an on-chain metric that measures the net amount of Bitcoin entering or exiting out of the wallets attached to any given exchange. The indicator’s value is calculated by subtracting the outflows from the inflows.
When the metric’s value is positive, the inflows overwhelm the outflows, and a net number of tokens enter the platform. As one of the main reasons investors deposit to exchanges is for selling purposes, this trend can be bearish for BTC.
On the other hand, the negative indicator suggests the exchange is observing net withdrawals currently, which may be a bullish sign for cryptocurrency in the long term, as it implies investors are potentially taking coins off into self-custody for HODLing.
Now, here is a chart that shows the trend in the Bitcoin exchange netflow specifically for Binance over the past week:
The value of the metric appears to have been positive in recent days | Source: @JA_Maartun on X
As displayed in the above graph, the Bitcoin Binance exchange netflow has held positive values during the recent plummet in the cryptocurrency’s price, suggesting that the platform has been receiving net deposits.
Interestingly, the metric has registered positive values even after the price decline has stopped, and its spikes have only been larger. This could mean that the whale entities only plan to sell more, which could be bad news for the asset.
So far, Bitcoin has made some recovery since these net inflows to the number one cryptocurrency exchange by trading volume have appeared, implying that the whales may not have pulled the trigger on their selling yet.
It remains to be seen if these deposits have a bearish effect on the asset, thus elongating the drawdown, or if they have made the inflows for purposes other than selling.
In other news, an old Bitcoin whale appears to have moved many tokens in the past day, as Maartunn pointed out in another X post.
The data for the transactions of coins that are more than ten years old | Source: @JA_Maartun on X
This Bitcoin whale has transferred 700 BTC (around $45.4 million at the current exchange rate), which has been dormant for over ten years.
BTC Price
Bitcoin plunged to $63,400 during its latest decline, but the asset has since rebounded to $64,800.
Looks like the price of the asset has been going down recently | Source: BTCUSD on TradingView
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
