On-chain data shows that Binance just received a 130,000 BTC influx of bitcoin, which could be a sign of bearish sentiment for the price of the cryptocurrency.
Bitcoin exchange Binance’s reserve surged over the last day
As noted by an analyst in a CryptoQuant post, Binance received a large Bitcoin deposit today.
The relevant indicator here is “exchange reserve”, which tells us the total amount of BTC currently held in the wallets of the centralized exchange.
When the value of this indicator decreases, it means that investors are withdrawing their coins from the exchange right now. Such a trend, if it continues, could be bullish for the price of the cryptocurrency as it could be a sign of accumulation.
On the other hand, the rise of the indicator suggests that holders are currently transferring their BTC to exchange wallets. Since investors can deposit funds to sell, such a trend could be bearish for the value of the coin.
And now here is a chart showing the dynamics of the exchange reserve of bitcoins of the Binance crypto exchange over the past few years:
The value of the metric seems to have suddenly jumped up in recent days | Source: CryptoQuant
As you can see in the chart above, the Bitcoin exchange reserve for Binance plummeted at the beginning of the month.
These outflows came as cryptocurrency exchange FTX went under, rekindling fear among investors about centralized storage and causing them to rush to withdraw their coins from such platforms.
However, in the past few days, the BTC reserve on Binance has started to rise again, meaning that the whales may be dumping money.
And today, the indicator very quickly rose to a new high, as investors made a large deposit of 130 thousand BTC on the exchange.
At this point, it is unclear if this is a organic increase in Binance’s bitcoin reserve, or if it is due to the exchange making some internal wallet shuffles that were mistaken as fresh deposits on the CryptoQuant metric.
However, if this is indeed a real spike, then the result could be bearish for the BTC price.
At the time of writing, the price of Bitcoin is hovering around $16.7k, down 3% over the past week. Over the past month, the cryptocurrency has lost 14% in price.
The chart below shows the price dynamics of the coin over the past five days.
Looks like BTC has continued to hold still in the last few days | Source: BTCUSD on TradingView
Featured image from Jonathan Borba on Unsplash.com, charts from TradingView.com, CryptoQuant.com