A number of important crypto withdrawals are taking place on the world’s largest crypto exchange by volume. In the middle, Bitcoin (BTC) saw record buying activity as it returned to six-week highs.
Cryptocurrency exchange Binance is 55,000 BTC lighter!
Koindeks.com As you follow, now despite the warnings that a macro base may not have formed, Bitcoin investors wasted no time pushing BTC above $20,000. The gains of the last two days have brought a big shift in user behavior, with BTC balances falling overall.
Binance, the largest exchange by volume, was particularly interesting. The cryptocurrency exchange saw a net position change of over 55,000 BTC on October 26. This is the biggest change ever. Exits have outstripped all other buying sprees this year, including the June $17,600 crash and the March 2020 crash.
Binh Dang, a contributor to CryptoQuant, also noted that derivatives platform exits broke multi-month records. “One year from now, yesterday was the day that most cryptocurrencies moved from the derivatives exchange: 71,579 Bitcoin,” the firm wrote in one of their Quicktake posts. He also stated that internal movements may account for some of the total. In this context, he made the following statement:
This number contributes to bringing the exit of BTC from derivatives exchanges to 94,024 Bitcoins. This is the most valuable number seen since July. This metric has helped drastically reduce total reserves on derivatives exchanges since the price of Bitcoin fell in May.
Binh Dang added that these kinds of derivative outflows were accompanied by the reduction of selling pressure on cryptocurrencies once. Based on this, he made the following assessment:
Still missing on-chain Bitcoin base confirmation. However, we will see the difference when we look at late 2018. In the strongest price drops in the two years leading up to 2020 and 2021, every appearance of a strong downtrend on derivative reserve showed a precedent reduction in selling pressure. What do you think this time?
“Earnings Didn’t Change Bitcoin Bear Market”
CryptoQuant looks at the BTC stocks of exchanges from October 25 to October 26, noting that there are about 42,500 BTC net outflows from the major platforms it tracks. Unlike Binance, the mid-platform status change did not set a global record. Because, June remained higher.
In summary, CryptoQuant affiliate IT Tech warns that the good times may not last long. It’s possible that the Fed’s meeting on interest rates could take an unintended turn. IT Tech wrote in a Quicktake:
For me, that means some kind of bogus pump before the 2.11.2022 FOMC meetings. DXY is falling. This in turn helped the growth of the S&P500 and Bitcoin. Be careful! We are still in a bear market. A small pump didn’t change that.