On-chain data shows that crypto exchange Binance just received Bitcoin inflows of 130k BTC, a sign that may be bearish for the price of the crypto.
Binance’s bitcoin exchange reserve rose sharply in the past day
As one analyst pointed out in a CryptoQuant PublishBinance received a huge Bitcoin deposit today.
The relevant indicator here is the “foreign exchange reservewhich tells us the total amount of BTC currently sitting in the wallets of a centralized exchange.
When the value of this metric decreases, it means that investors are withdrawing their coins from the exchange at this time. Such a trend, when it holds, could be bullish for the crypto price as it could be a sign of accumulation.
On the other hand, the rises in the indicator suggest that holders are currently transferring their BTC to wallets on the exchange. As investors might be depositing for the purpose of selling, this type of trend can be bearish for the value of the coin.
Now here is a graph that shows the trend of the crypto exchange’s bitcoin exchange reserve Binance during the last years:
The value of the metric seems to have suddenly jumped up in recent days | Source: CryptoQuant
As you can see in the graph above, the Bitcoin exchange reserve for Binance fell sharply at the start of the month.
These outflows occurred as crypto exchange FTX went bankrupt, reigniting fear among investors around the central guard and forcing them to rush to withdraw their coins from these platforms.
In recent days, however, Binance’s BTC reserve has again started to increaseimplying that the whales could move to spill.
And today, the indicator rose very quickly to a new high as investors made a massive deposit of 130,000 BTC to the exchange.
At this time, it’s unclear if this is an organic increase in Binance’s Bitcoin reserve, or if it’s because of the exchange doing internal wallet reshuffles that have been picked up. mistakenly as new deposits by CryptoQuant’s metric.
However, if it is indeed a true peak, the result could be bearish for the price of BTC.
As of this writing, the price of Bitcoin is hovering around $16.7,000, down 3% in the past week. Over the past month, the crypto has lost 14% in value.
The chart below shows the price trend 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