Discovering Positive Bitcoin Binance Netflow Trends 📈
In a recent update on X, CryptoQuant community manager Maartunn shared insights on the current Bitcoin exchange netflow trend for the popular cryptocurrency exchange Binance.
The term “exchange netflow” refers to an on-chain metric that tracks the net amount of Bitcoin entering or leaving the wallets associated with a specific exchange. This metric is derived by subtracting the outflows from the inflows.
When the value of this metric is positive, it indicates that more Bitcoin is entering the exchange than leaving, resulting in a net influx of tokens. This influx is usually associated with selling activities by investors, which could potentially have a bearish impact on BTC.
Conversely, a negative value suggests that the exchange is experiencing net withdrawals, which could be a bullish indicator for the long-term prospects of the cryptocurrency. It implies that investors might be moving their coins to self-custody for hodling purposes.
Bitcoin Binance Netflow Analysis 📊
The chart below illustrates the trend in the Bitcoin exchange netflow specifically for Binance over the past week:
As shown in the graph, the Bitcoin Binance exchange netflow has maintained positive values even amidst the recent price drop in the cryptocurrency, indicating a consistent influx of deposits to the platform.
Interestingly, the metric has continued to record positive values even after the price decline stabilized, with spikes becoming more pronounced. This could potentially suggest that whale entities are gearing up to sell more, posing a downside risk for the asset.
Following these net inflows to the leading cryptocurrency exchange by trading volume, Bitcoin has seen some recovery, hinting that the whales may have yet to initiate a selling spree.
The impact of these deposits on the asset’s price moving forward remains uncertain, as it is unknown whether the inflows are solely for selling purposes or for other motives.
Additionally, there have been reports of an old Bitcoin whale moving a significant number of tokens in the past day, as highlighted by Maartunn in another update on X.
This whale transferred 700 BTC, equivalent to approximately $45.4 million at the current exchange rate, which had remained dormant for over a decade.
Bitcoin Price Movement 📉📈
Bitcoin witnessed a drop to $63,400 in its recent decline but has since bounced back to $64,800.
Hot Take: Watch Out for Recent Binance Netflow Trends 🚨
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.
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