Binance sees record 138K BTC inflows as opinions differ on what Bitcoin price will do next

BItcoin exchange inflows echo 2018 crypto capitulation, but the reasons for the largescale moves from Binance remain unclear. 6889 Total views 26 Total shares Listen to article 0:00 Markets News Bitcoin (BTC) inflows to largest exchange Binance just saw a giant spike reminiscent of the 2018 bear market capitulation.

Data from on-chain analytics platform CryptoQuant shows that on Nov. 18, a giant tranche of almost 60,000 BTC entered Binances wallet.Exchange inflows highest since late 2018

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.Binance BTC inflows chart. Source: CryptoQuant

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.Binance BTC reserve chart. Source: CryptoQuant

The event has not gone unnoticed, and one commentator was quick to note that just over 59,000 had come from a de-peg of Binances Bitcoin BEP2 (BTCB) token.

BTCB is a Bitcoin-backed token on Binance Chain with a publicly known reserve address. That wallet contained 68,200 BTC at the time of writing, having seen outflows of 127,351 BTC on the day.

Unlike regular operations, however, the decrease in the BTCB market cap at the same time as the reserve decreased suggests that genuine selling is afoot, according to CryptoQuant CEO Ki Young Ju.

Ki explained the theory behind what he called sellside pressure in a Twitter thread:Rationale:- If youre CZ, why do you unpeg Bitcoins from BNB chain? Your goal is to support projects on BNB chain.- No announcements from Binance means its customer or investors money.So I think this activity was highly likely from customer(s) who are in urgent situation.Bitcoin BEP2 (BTCB) reserve address transaction summary (screenshot). Source: BTC.comExchanges week of heat

Opinions were nonetheless far from aligned on the issue, with others arguing that the giant inflows were simply internal reorganization, which would have no further repercussions.

Related:Bitcoin price target now $13.5K as BTC trader says exit all the markets

Binance saw a large inflow of up to 127,351 bitcoins and a large outflow of nearly 50,000 bitcoins today. On-chain verification shows that these inflows and outflows are organized by internal wallets, which are transfers between cold wallets and wallets for proof of reserves, cryptocurrency journalist Colin Wu stated in a widely-reproduced tweet.

I dont really understand the Jump rumors, Andrew T, a technician at analytics platform Nansen, tweeted about the general inflow tally to Binance:There have been some massive outflows past seven days, but also inflows elsewhere. theyre transferring to Binance to dump doesn’t seem right.Bitcoin exchange BTC netflow chart. Source: CryptoQuant

As Cointelegraph reported, exchange users withdrew over $3 billion in the days following FTX going under, a trend which continues.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision. #Bitcoin #Bitcoin Price #Markets #Cryptocurrency Exchange #Binance Related News 27,000 requests last year: Collaboration key for Binances Investigations team A record 55,000 Bitcoin, or over $1.1 billion, was just withdrawn from Binance Bitcoin price hits 2-week lows as FTX bank run drains BTC reserves Bitcoin price hits multi-year low at $15.6K, analysts expect further downside FTX collapse followed by an uptick in stablecoin inflows and DEX activity