Binance has seen unprecedented levels of Bitcoin deposits
Binance, one of the world’s largest cryptocurrency exchanges, saw record 138,000 BTC inflows in the past 24 hours – indicating that people are still willing to invest in Bitcoin even when its price is unstable. While some experts predict that BTC will reach between $38,000 to $100,000 by the end of 2023, others believe that it will continue to decline in value.
Bitcoin just saw a huge influx of capital that is reminiscent of the bear market capitulation of 2018. Data from on-chain analytics platform CryptoQuant shows that on Nov. 18, nearly 60,000 BTC entered Binance’s wallet. This is a significant move, especially given the current climate of the Bitcoin market. While the reasons for this inflows are unclear, it is likely that it is due to a combination of factors including investor confidence and institutional demand. Whatever the reason, it is clear that there is still strong interest in Bitcoin even in the midst of a bear market.
The Aftermath of FTX collapse on BTC
BTC price contagion fears thanks to FTX insolvencies and related panic selling are ongoing. Now, the latest on-chain figures from Binance could provide an additional catalyst for nervous markets — the exchange has seen its biggest daily inflow on record. With Nov. 18 not over, partial data from CryptoQuant puts current inflows at over 138,000 BTC for the day so far. To put the deposit in perspective, even taking into account outflows — not just at Binance, but other major exchanges — the inflows are still the largest since Nov. 30, 2018.
Two weeks later, BTC/USD bottomed at $3,100 after falling 40%. For Binance itself, meanwhile, the move means that its BTC reserves are now higher than before the FTX debacle began — 573,000 compared to 513,000 on Nov. 6. The continued inflow of BTC to Binance comes despite there being a number of alternative exchanges available that have seen no such issues with customer funds — suggesting that traders remain confident in the company’s ability to weather the storm. Nevertheless, with markets remaining highly skittish, it remains to be seen whether this inflow will be enough to calm nerves or whether it will simply add fuel to the fire.
Analysis of recent drop in value of Binance’s (BTCB)
On March 12, the market value of Binance’s Bitcoin-backed token (BTCB) fell sharply, leading to speculation that the token was being sold off. According to Ki Young Ju, CEO of CryptoQuant, the decrease in the BTCB market cap at the same time as the decrease in the reserve suggests that genuine selling is taking place. This news comes as a surprise to many in the crypto community, as Binance is one of the most popular exchanges for buying and selling cryptocurrencies. It is unclear at this time what has caused this sudden drop in value, but it is sure to cause a stir in the markets in the coming days.
In a recent Twitter thread, CEO Ki Young Ju of CryptoQuant explained the theory behind what he called “sellside pressure.” According to Ju, the pressure to sell comes from those who are invested in the coin and who are in urgent need of cash. This pressure can be seen as a natural consequence of the volatile nature of cryptocurrency prices.
When the value of a coin drops, investors may feel the need to sell in order to cut their losses. However, this can often lead to a further decline in price, as more and more investors sell off their holdings. As such, it is important for investors to be aware of the potential for sellside pressure before investing in any given coin. Those who are able to weather the storm and hold onto their coins during periods of volatility may be rewarded handsomely in the long run.
FTX collapse heats up crypto exchanges
The Royal Bahamas Police Force announced that it has launched a criminal investigation into the FTX cryptocurrency exchange. This comes following the collapse of the FTX exchange, which saw millions of dollars in customer funds lost. The police force did not give any further details on the investigation, but said that it is taking the matter “very seriously.” This news comes as a surprise to many in the cryptocurrency community, as FTX is one of the most popular exchanges in the world.
Following the events of FTX and Binance inflow increase, many people had different takes on the matter, with some saying the massive influxes were only a result of internal rearrangement that would have no lasting effects. An estimated 127,351 BTC arrived at Binance, while roughly 50,000 BTC left the exchange. Altogether most crypto exchanges felt the heat as users withdrew almost $3 billion from crypto exchanges in the days after FTX’s collapse, and this tendency has not abated.