Bitcoin (BTC) inflows to Binance, the largest exchange, have just seen a huge spike reminiscent of the capitulation of the 2018 bear market.
Data from on-chain analytics platform CryptoQuant show On November 18th, a huge tranche of around 60,000 BTC entered the Binance wallet.
Highest currency inflows since late 2018
Fear of BTC price spillover from FTX bankruptcy and associated panic selling are ongoing.
Now, Binance’s latest on-chain figures could provide an additional catalyst for a nervous market. The exchange is recording its largest daily inflow on record.
Since November 18th is not over, the current inflow is over 138,000 BTC, according to partial data from CryptoQuant.
Putting deposits into perspective, the inflow is the highest since 30th November 2018, even considering outflows not only on Binance but also on other major exchanges. Two weeks later, BTC/USD bottomed out at $3,100 after dropping 40%.
Meanwhile, for Binance itself, the move meant that BTC reserves were higher than they were before the FTX debacle began, at 573,000 compared to 513,000 on November 6.
The event got a lot of attention, and one commenter was quick to note that only 59,000 came from the “depegging” of Binance’s Bitcoin BEP2 (BTCB) token.
BTCB is a Bitcoin-backed token on Binance Chain with a publicly known reserve. address. That wallet contained him 68,200 BTC at the time of writing, and on the day he saw 127,351 BTC outflow.
However, according to CryptoQuant CEO Ki Young Ju, unlike normal operations, BTCB’s market cap fell at the same time as reserves fell, suggesting a real sell-off was underway. increase.
air explained The theory behind what he called “sell-side pressure” in a Twitter thread:
“Rationale: – If you are CZ, why are you unpegging Bitcoin from the BNB chain? Your goal is to support the project on the BNB chain. – No announcement from Binance. means it is the money of a customer or investor, so I think it is likely that this activity is from a customer who is in a dire situation.”
Exchange Fever Week
Nevertheless, opinion was far from unanimous on the issue, with some arguing that the huge influx was merely an internal restructuring and would have no further impact.
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“Binance has seen massive inflows of up to 127,351 Bitcoins and massive outflows of around 50,000 Bitcoins today. This is a transfer between cold wallets and wallets for proof of reserves.” said in a widely reproduced tweet.
Andrew T, a technologist at analytics platform Nansen, tweeted about the general inflow tally on Binance: “I don’t quite understand the Jump rumors.”
“There has been a massive outflow in the last 7 days, but it is also flowing elsewhere. ‘They are transferring to Binance to dump’ doesn’t seem right. ”
As Cointelegraph reported, exchange users withdrew over $3 billion in days after FTX fell, and the trend continues.
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