The data on the chain show that the Bitcoin exchange reserve for the Binance platform has recently dropped, a panel that could be optimistic for the BTC price.
Bitcoin Binance Exchange Reserve recently crashed
As indicated by an analyst in a Quicktake Cryptoque post, the Bitcoin exchange reserve for Binance has had a sharp decline since mid-April. The “exchange reserve” here refers to an indicator which keeps a trace of the total quantity of BTC which is in the portfolios of a given centralized exchange.
When the value of this metric increases, this means that investors exceed a net number of assets in the platform. As one of the main reasons why holders transfer their parts to exchanges for purposes linked to sale, this type of trend can have a lower effect on the price of cryptocurrency.
On the other hand, the indicator observing a drop suggests that the outputs are overwhelming the entries and that a clear quantity of the assets leave the exchange. Such a trend can be a sign that investors accumulate, which can naturally be optimistic for the BTC.
Now here is the graphic that shows the trend in the Bitcoin exchange reserve for the cryptocurrency exchange binance in the past two years:
Looks like the value of the metric has plummeted in recent days | Source: CryptoQuant
As displayed in the above graph, the Binance Bitcoin exchange reserve has followed a steep drop trajectory since mid-April, which implies that investors have been in net withdrawal mode.
In total, the platform saw the flow of around 51,000 BTC ($ 4.8 billion) during this period. Given the large quantity involved, it is likely that holders the size of the whales are behind the movements.
These last exits from the exchange accompanied a recovery rally at the price of the BTC. From the table, it is visible that a similar trend has also been observed in the last two months of 2024.
At the time, Bitcoin Bull Run struck a top at the same time as the bottom in the metric. Given this trend, it is possible that the acting price rally can also continue as long as the current trend in a drop in the exchange reserve continues for a binance.
That said, on the current market, exchanges are no longer as relevant as before, due to the emergence of other bridges such as the funds negotiated on the stock market (ETF). Thus, while withdrawals of exchange can always be a bullish sign, where BTC would then head on how the other parts of the sector are looking for.
BTC price
Bitcoin withdrew beyond the level of $ 97,000 just days ago, but it seems that the medal had to face a withdrawal since then, because it decreased to $ 94,000 to launch the new week.
The price of the coin appears to have erased some of its recent recovery | Source: BTCUSDT on TradingView
Dall-E, Cryptoquant.com star image, tradingView.com graphic
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