130k BTC Just Flowed Into Binance

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On-chain data shows that crypto exchange Binance just received Bitcoin inflows of 130,000 BTC, a sign that could be bearish for the price of the crypto.

Binance’s Bitcoin Exchange reserve has surged in the past day

As noted by an analyst in a CryptoQuant afterBinance received a huge Bitcoin deposit today.

The relevant indicator here is the “exchange reserve”, which tells us the total amount of BTC currently in the wallets of a centralized exchange.

When the value of this metric drops, it means that investors are now taking their coins off the exchange. If such a trend continues, it could be bullish for the price of the cryptocurrency as it could be a sign of accumulation.

On the other hand, increases in the indicator suggest that holders are currently transferring their BTC to the exchange’s wallet. Since investors can deposit for selling purposes, this kind of trend can be bearish for the value of the coin.

Now, here is a chart showing the trend in the crypto exchange’s Bitcoin exchange reserve Binance In recent years:

Bitcoin Exchange reserve - Binance

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 fell sharply earlier this month.

This outflow occurred when the crypto exchange FTX collapsed, reigniting investor fears around central custody and they rushed to withdraw their coins from such platforms.

However, in recent days, Binance’s BTC reserve has risen again started to riseimplying that whales may be taking steps to dump.

And today, the indicator has risen very quickly to a new high as investors made a huge deposit of 130,000 BTC on the exchange.

At this point, it’s unclear if this is an organic increase in Binance’s Bitcoin reserve, or if it’s because the exchange has been making some internal wallet shuffles that have been erroneously picked up as new deposits by CryptoQuant’s metric.

However, if it is indeed a true spike, then the result could be bearish for the price of BTC.

BTC price

At the time of writing, Bitcoin’s price is hovering around $16.7k, down 3% over the past week. Over the past month, the crypto has lost 14% in value.

The chart below shows the trend in the coin’s price over the past five days.

Bitcoin price chart

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

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