Bitcoin reserves of the Binance exchange have fallen to the minimum since the beginning of the year

This may indicate traders’ positive expectations regarding the asset’s price growth

26.12.2024 - 10:15

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What’s new? Bitcoin reserves on Binance, the world’s largest centralized crypto exchange (CEX) by trading volume, fell to a January 2024 low. Then just two months later, in March, the price of the first cryptocurrency skyrocketed by 90% and hit a new record above $73 000. If bitcoin now follows the same pattern with its current price above $95 000, it could exceed $180 000 in a few months.

Material by CryptoQuant

What else is known? According to a CryptoQuant analyst under the nickname Darkfost, bitcoin reserves on Binance have fallen below 570 000 coins. Declining reserves on the CEX usually signals that investors are moving bitcoin to cold non-custodial wallets and are optimistic about its long-term price prospects.

“When periods of withdrawals occur, it is often a sign of positive momentum building in the market,” Darkfost said.

Bitcoin’s dominance, its share of the total crypto market capitalization, is currently 58,27%, just below the critical 60% level, according to TradingView.

Following Donald Trump’s victory in the US presidential election, bitcoin has reached its all-time high several times, the highest being $108 300, recorded on December 17. However, over the past two weeks, the asset lost 5,4% and fell below $100 000. Nevertheless, the yield since the beginning of the year exceeds 120%.

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