The influx of Bitcoin (BTC) money into the Binance exchange has just witnessed a huge spike reminiscent of the “capitulation” of the Bear market in 2018. Data from on-chain analytics platform CryptoQuant shows that on November 18, a huge amount of BTC was transferred to Binance’s wallet.
Highest inflow to the exchange since the end of 2018
The fear of BTC price spread due to FTX insolvency and related panic sell-off activity is ongoing. Now, the latest On-Chain Data from Binance could provide yet another catalyst for anxious markets — the exchange has seen the largest daily inflows on record.
As November 18 has not ended, a piece of data from CryptoQuant shows that the current inflow is more than 138,000 BTC for the day as of the time of writing.
In simple terms, even taking into account capital outflows — not just in Binance, but other major exchanges as well — inflows are still the largest since November 30, 2018. Two weeks later, BTC/USD bottomed out at $3,100 after falling 40%.
Meanwhile, for Binance itself, the move means that its BTC reserves are now higher than they were before the FTX crash began—573,000 compared to 513,000 on November 6.
The event was not unnoticed and one commentator was quick to note that more than 59,000 BTC have come from a “de-peg” Bitcoin BEP2 (BTCB) token by Binance. BTCB is a Bitcoin-backed token on Binance with a public reserve address . That wallet contained 68,200 BTC at the time of writing, after 127,351 BTC were withdrawn during the day.
However, unlike normal operations, the decrease in BTCB Market Cap at the same time as declining reserves indicates an ongoing investor sell-off, according to CryptoQuant CEO Ki Young Ju. Ki explained the theory behind what he called “selling pressure” in a thread on Twitter:
Rationale:– If you are CZ, why would you withdraw Bitcoin from BNB Chain? Your goal is to support projects on BNB Chain. – No announcement from Binance means customer or investor funds. So I think this activity is very likely to come from the customer(s) who are in a state of emergency.
What is the reason?
However, opinions remain unanimous on this issue, with others arguing that the huge inflow of capital simply reorganizes the internal wallet, which will not cause further consequences. “Binance saw an inflow of 127,351 BTC and an outflow of nearly 50,000 BTC today.
On-chain verification shows that these inflows and outflows are held by internal wallets, which are transfers between cold wallets and wallets as proof of reserves,” crypto journalist Colin Wu stated in a tweet. “I really don’t understand the Jump rumors,” Andrew T, a technician at analytics platform Nansen, tweeted about the total inflows into Binance:
There has been some massive outflows in the last seven days, but there have been inflows elsewhere, as well. “they are turning to Binance for dumping” doesn’t seem right.
As Cafebitcoin reported, exchange users withdrew more than $3 billion in the days following the FTX crash.